We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Which Healthcare Mutual Fund Should You Buy: FSMEX or PHSZX?
Read MoreHide Full Article
Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services’ demand does not vary much with market conditions and thus offers sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate stable cash flows, irrespective of market conditions. Mutual funds are the perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Therefore, investing in healthcare mutual funds seems prudent. Choosing the right mutual funds for your portfolio can be quite tricky though. To that end, let us find out which of the two funds discussed below is better.
Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report)
This fund aims for capital growth. It invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers.
This Sector-Health product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the three and five-year benchmarks are 20.6% and 21.8%, respectively. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
Meanwhile, as of the last filing, Thermo Fisher Scientific and Danaher Corporation were the top holdings for Fidelity Select Medical Technology and Devices Portfolio fund.
This product, with a Zacks Mutual Fund Rank #1 (Strong Buy), was incepted in April 1998 and is managed by Fidelity. FSMEX requires no minimal initial investment.
PGIM Jennison Health Sciences Fund- Class Z (PHSZX - Free Report)
This fund aims for long-term capital appreciation. The fund invests the majority of its assets in securities of companies that function within the healthcare sector, such as pharmaceutical companies, biotechnology companies, medical device manufacturers, healthcare service. The fund managers seek investments whose prices tend to increase over time.
This Sector-Health product has a history of positive total returns for over 10 years. Specifically, the fund’s returns are 11.5% over the three-year and 15.9% of the five-year period. To see how this fund performed compared in its category, and other #1 and 2 Ranked Mutual Funds, please click here.
Meanwhile, as of the last filing, Unitedhealth Group Inc and Humana Inc. were the top holdings for PGIM Jennison Health Sciences Fund- Class Z.
This product with a Zacks Mutual Fund Rank #2 was incepted in June 1999 and is managed by PGIM. PHSZX requires no minimal initial investment.
To Conclude
While both FSMEX and PHSZX are buy-rated funds, upon having a closer look, we find that the former is a clear winner. FSMEX has a history of providing higher returns compared to PHSZX at a considerably lower investment. Investors looking for high returns and value for money should opt for FSMEX.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Which Healthcare Mutual Fund Should You Buy: FSMEX or PHSZX?
Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services’ demand does not vary much with market conditions and thus offers sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate stable cash flows, irrespective of market conditions. Mutual funds are the perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Therefore, investing in healthcare mutual funds seems prudent. Choosing the right mutual funds for your portfolio can be quite tricky though. To that end, let us find out which of the two funds discussed below is better.
Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report)
This fund aims for capital growth. It invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers.
This Sector-Health product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the three and five-year benchmarks are 20.6% and 21.8%, respectively. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
Meanwhile, as of the last filing, Thermo Fisher Scientific and Danaher Corporation were the top holdings for Fidelity Select Medical Technology and Devices Portfolio fund.
This product, with a Zacks Mutual Fund Rank #1 (Strong Buy), was incepted in April 1998 and is managed by Fidelity. FSMEX requires no minimal initial investment.
PGIM Jennison Health Sciences Fund- Class Z (PHSZX - Free Report)
This fund aims for long-term capital appreciation. The fund invests the majority of its assets in securities of companies that function within the healthcare sector, such as pharmaceutical companies, biotechnology companies, medical device manufacturers, healthcare service. The fund managers seek investments whose prices tend to increase over time.
This Sector-Health product has a history of positive total returns for over 10 years. Specifically, the fund’s returns are 11.5% over the three-year and 15.9% of the five-year period. To see how this fund performed compared in its category, and other #1 and 2 Ranked Mutual Funds, please click here.
Meanwhile, as of the last filing, Unitedhealth Group Inc and Humana Inc. were the top holdings for PGIM Jennison Health Sciences Fund- Class Z.
This product with a Zacks Mutual Fund Rank #2 was incepted in June 1999 and is managed by PGIM. PHSZX requires no minimal initial investment.
To Conclude
While both FSMEX and PHSZX are buy-rated funds, upon having a closer look, we find that the former is a clear winner. FSMEX has a history of providing higher returns compared to PHSZX at a considerably lower investment. Investors looking for high returns and value for money should opt for FSMEX.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>