Sponsored Links 
Top 5 Healthcare Mutual Funds
Print
ShareWhen markets are passing through choppy waters, investors often rely on the healthcare sector to safeguard their investments. This is because the demand for healthcare services does not vary with market conditions, making them a safe haven during difficult times. Many pharma companies also generate regular dividends, which go a long way in softening the blow dealt by plummeting share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below we will share with you 5 top rated health mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all health funds, then click here.
Vanguard Health Care Index (VHCIX) invests primarily in healthcare stocks and seeks to match the performance of the MSCI U.S. Investable Market Health Care 25/50 index. This index consists of stocks of companies of all sizes from this sector. The healthcare mutual fund returned 10.08% in the last one year period.
The healthcare mutual fund has an expense ratio of 0.19% compared to a category average of 1.60%.
Schwab Health Care (SWHFX) seeks capital appreciation over the long term. The fund invests the majority of its assets in the healthcare sector. It primarily purchases equity securities but may also invest in future contracts. It focuses on investing in domestic firms, but may invest up to 25% of its assets in other countries. The healthcare mutual fund has a three year annualized return of 12.32%.
Paul Alan Davis is the fund manager and he has managed this healthcare mutual fund since 2006.
Saratoga Health & Biotechnology A (SHPAX) invests heavily in stocks of domestic and foreign healthcare and biotech firms of all sizes. Common and preferred stocks and related convertible securities constitute the fund’s major investments. The healthcare mutual fund returned 13.19% in the last one year period.
The healthcare mutual fund has a minimum initial investment of $250 and an expense ratio of 2.73% compared to a category average of 1.60%.
Fidelity Select Biotechnology (FBIOX) seeks capital growth. The fund invests at least 80% of its assets in companies seeking to benefit from advances in the biotechnological sector. It may also purchases securities issued by foreign companies. The healthcare mutual fund has a five year annualized return of 4.16%.
As of October 2011, this healthcare mutual fund held 118 issues, with 16.42% of its total assets invested in Amgen Inc.
ProFunds Pharmaceuticals UltraSector (PHPSX) invests in equity securities and derivatives which together should provide daily returns which are 150% of the daily return of the Dow Jones U.S. Pharmaceuticals Index. The balance of the fund’s assets is utilized to purchase money market securities. The healthcare mutual fund returned 8.76% over the last one year period.
Hratch S. Najarian is the fund manager and he has managed this healthcare mutual fund since 2011.
To view the Zacks Rank and past performance of all health mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.
Read the full analyst report on VHCIX
Read the full analyst report on SWHFX
Read the full analyst report on SHPAX
Read the full analyst report on FBIOX
Read the full analyst report on PHPSX
Loading Stories...
|
||||||||||||||
More Zacks Resources
More Zacks Links
| Market Summary | May 26, 2012 18:08 pm ET |
-74.92