Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary much with market conditions. Also, investments in the sector provide sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate consistent cash flows irrespective of market conditions. Mutual funds are perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below we share with you three top-ranked healthcare mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 14.4%.
Ziad Bakri is the fund manager of PRHSX since 2016.
Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that research, develop, manufacture and market various biotechnological products, services and processes. It also invests in companies that gain considerably from scientific and technological advances in biotechnology. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike. The fund has returned 13.4% in the past three years.
As of the end of May 2020, FBIOX held 262 issues with 9.2% of its assets invested in AbbVie Inc.
Vanguard Health Care Fund Investor Shares (VGHCX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets in securities of companies engaged in various activities in the healthcare industry. It invests in securities of both U.S. and non-U.S. issuers alike. VGHCX has three-year annualized returns of 9.3%.
VGHCX has an expense ratio of 0.32% compared with the category average of 1.26%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary much with market conditions. Also, investments in the sector provide sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate consistent cash flows irrespective of market conditions. Mutual funds are perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below we share with you three top-ranked healthcare mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 14.4%.
Ziad Bakri is the fund manager of PRHSX since 2016.
Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that research, develop, manufacture and market various biotechnological products, services and processes. It also invests in companies that gain considerably from scientific and technological advances in biotechnology. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike. The fund has returned 13.4% in the past three years.
As of the end of May 2020, FBIOX held 262 issues with 9.2% of its assets invested in AbbVie Inc.
Vanguard Health Care Fund Investor Shares (VGHCX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets in securities of companies engaged in various activities in the healthcare industry. It invests in securities of both U.S. and non-U.S. issuers alike. VGHCX has three-year annualized returns of 9.3%.
VGHCX has an expense ratio of 0.32% compared with the category average of 1.26%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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