June Jobs Data Puts Focus on Healthcare ETFs & Stocks

Nonfarm payrolls in the United States rose by 147,000 in June 2025, following an upwardly revised 144,000 in May and surpassing forecasts of 110,000. The reading was also in line with the average monthly gain of 146K over the prior 12 months. 

The U.S. unemployment rate edged down to 4.1% in June 2025 from 4.2% in May, defying market expectations of a rise to 4.3%. The rate has held within a narrow 4.0-4.2% band since May 2024, signaling broad labor market stability.

The number of unemployed dropped by 222,000 to 7.015 million, while employment rose modestly by 93,000 to 163.366 million. However, the overall labor force shrank by 130,000 to 170.380 million.

Average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents, or 0.2%, to $36.30 in June. Over the past 12 months, average hourly earnings increased by 3.7%. In June, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3%, to $31.24.

Below, we have highlighted the sector and its related exchange-traded funds (ETFs) that will likely experience smooth trading in the days ahead in light of the June jobs data.

Sector in Focus

Healthcare

Healthcare added 39,000 jobs in June, similar to the average monthly gain of 43,000 over the prior 12 months. In June, job gains were noted in hospitals (+16,000) and in nursing and residential care facilities (+14,000).

ETFs in Focus

Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum, although Trump’s tax bill may lead millions of Americans to lose healthcare coverage. The fund has 30% exposure to the pharma industry, followed by 22.32% exposure to the healthcare providers & services industry, about 22% focus on Health Care Equipment & Supplies, 17.1% focus on the biotech sector and 8.7% focus on the life sciences tools & services.

iShares U.S. Healthcare Providers ETF IHF concentrates on companies in the healthcare provider and services sector. The underlying Dow Jones U.S. Select HealthCare Providers Index is a free-float adjusted market capitalization-weighted index. It measures the performance of the healthcare providers sub-sector of the U.S. equity market. It includes health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes, rehabilitation & retirement centres. The fund charges 40 bps in fees.

Vanguard Health Care ETF VHT tracks the MSCI US Investable Market Health Care 25/50 Index made up of stocks of U.S. companies in the healthcare sector. The fund charges 9 bps in fees and sports a Zacks Rank #1.

Stocks in Focus

HCA Healthcare HCA, which has a Zacks Rank #3 (Hold), deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States. The company has a trailing four-quarter earnings surprise of 7.06%, on average.

Welltower WELL is a real estate investment trust (REIT) that is engaged in investments with seniors housing operators, post-acute providers and health systems. The company has a trailing four-quarter earnings surprise of 4.24%, on average.

Zacks Rank #2 Omega Healthcare Investors OHI is a self-administered real estate investment trust (REIT), investing in income-producing healthcare facilities, principally long-term care facilities located in the United States and the United Kingdom. The company has a trailing four-quarter earnings surprise of 2.13%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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