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.
4 Healthcare Mutual Funds to Shine on Coronavirus Vaccine Race
Read MoreHide Full Article
The coronavirus pandemic cripples the world for months and left healthcare officials, pharmaceutical companies and scientists globally scrambling for a vaccine. Healthcare and biotech companies have been rallying even amid the coronavirus slump courtesy of their steady progress in vaccine development.
The U.S. government’s Operation Warp Speed program aims to deliver over 300 million doses of safe, effective vaccine for the novel coronavirus by January 2021. Through the program, the government has entered into advanced purchase agreements with several companies with potential coronavirus vaccine candidates.
Moderna has signed a $1.5 billion deal with the U.S. government to supply 100 million doses of its potential coronavirus vaccine, mRNA-1273. Morderna’s vaccine, which is being developed in collaboration with the National Institute of Allergy and Infectious Diseases, is now in phase 3 clinical trial.
Across 100 research sites in the United States, 30,000 healthy participants are involved in the trial and results are expected to be out by November or December. The company has also received an additional $472 million in funding from the U.S. government’s Biomedical Advanced Research and Development Authority. Moderna plans to use the fund for late-stage clinical development of the vaccine.
Another vaccine developer, CureVac BV jumped more than 100% on Aug 14, after its debut on the Nasdaq. The company’s early-stage coronavirus trial is ongoing in healthy volunteers and results are expected by the end of this year. Similarly, other pharmaceutical giants like Johnson & Johnson, Pfizer and BioNTech, and Sanofi and GlaxoSmithKline have also posted promising results so far.
4 Top Healthcare Mutual Funds to Buy
This race to create a viable coronavirus vaccine is opening up near-term opportunities, making the health care sector a prospective space for investments. Hence, we have highlighted four health care mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors.
Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Health Care Portfolio (FSPHX - Free Report) fund aims for capital appreciation. This non-diversified fund invests the majority of its net assets in common stocks of companies principally engaged in the design, manufacture or sale of products or services used for or in connection with health care or medicine.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 16.1% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSPHXhas an annual expense ratio of 0.70%, which is below the category average of 1.26%. The fund invests in AstraZeneca and Eli Lilly that are involved in coronavirus vaccine development.
Franklin Biotechnology Discovery Fund Advisor Class (FTDZX - Free Report) aims for capital appreciation. This non-diversified fund invests the majority of its assets in securities of biotechnology companies and discovery research firms. However, it may invest 20% of its net assets in equity or debt securities of any type of issuer.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 10.1% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FTDZXhas an annual expense ratio of 0.77%, which is below the category average of 1.26%. The fund invests in Gilead Sciences, Inc. and Regeneron Pharmaceuticals that are involved in coronavirus vaccine development.
PGIM Jennison Health Sciences Fund- Class Z (PHSZX - Free Report) 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 prefer to invest in those companies whose prices will increase over time.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 11.4% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PHSZXhas an annual expense ratio of 0.86%, which is below the category average of 1.26%. The fund invests in Regeneron Pharmaceuticals and Eli Lilly that are involved in coronavirus vaccine development.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) aims for long-term capital appreciation. The fund invests a minimum of 80% of its assets in common stocks of companies mostly engaged in research, production and distribution of products and services in the healthcare-related industry. This non-diversified fund invests primarily in mid- and large-capitalization companies.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 14.4% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRHSXhas an annual expense ratio of 0.76%, which is below the category average of 1.26%. The fund invests in Eli Lilly and AstraZeneca that are involved in coronavirus vaccine development.
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
4 Healthcare Mutual Funds to Shine on Coronavirus Vaccine Race
The coronavirus pandemic cripples the world for months and left healthcare officials, pharmaceutical companies and scientists globally scrambling for a vaccine. Healthcare and biotech companies have been rallying even amid the coronavirus slump courtesy of their steady progress in vaccine development.
The U.S. government’s Operation Warp Speed program aims to deliver over 300 million doses of safe, effective vaccine for the novel coronavirus by January 2021. Through the program, the government has entered into advanced purchase agreements with several companies with potential coronavirus vaccine candidates.
Moderna has signed a $1.5 billion deal with the U.S. government to supply 100 million doses of its potential coronavirus vaccine, mRNA-1273. Morderna’s vaccine, which is being developed in collaboration with the National Institute of Allergy and Infectious Diseases, is now in phase 3 clinical trial.
Across 100 research sites in the United States, 30,000 healthy participants are involved in the trial and results are expected to be out by November or December. The company has also received an additional $472 million in funding from the U.S. government’s Biomedical Advanced Research and Development Authority. Moderna plans to use the fund for late-stage clinical development of the vaccine.
Another vaccine developer, CureVac BV jumped more than 100% on Aug 14, after its debut on the Nasdaq. The company’s early-stage coronavirus trial is ongoing in healthy volunteers and results are expected by the end of this year. Similarly, other pharmaceutical giants like Johnson & Johnson, Pfizer and BioNTech, and Sanofi and GlaxoSmithKline have also posted promising results so far.
4 Top Healthcare Mutual Funds to Buy
This race to create a viable coronavirus vaccine is opening up near-term opportunities, making the health care sector a prospective space for investments. Hence, we have highlighted four health care mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors.
Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Health Care Portfolio (FSPHX - Free Report) fund aims for capital appreciation. This non-diversified fund invests the majority of its net assets in common stocks of companies principally engaged in the design, manufacture or sale of products or services used for or in connection with health care or medicine.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 16.1% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSPHXhas an annual expense ratio of 0.70%, which is below the category average of 1.26%. The fund invests in AstraZeneca and Eli Lilly that are involved in coronavirus vaccine development.
Franklin Biotechnology Discovery Fund Advisor Class (FTDZX - Free Report) aims for capital appreciation. This non-diversified fund invests the majority of its assets in securities of biotechnology companies and discovery research firms. However, it may invest 20% of its net assets in equity or debt securities of any type of issuer.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 10.1% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FTDZXhas an annual expense ratio of 0.77%, which is below the category average of 1.26%. The fund invests in Gilead Sciences, Inc. and Regeneron Pharmaceuticals that are involved in coronavirus vaccine development.
PGIM Jennison Health Sciences Fund- Class Z (PHSZX - Free Report) 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 prefer to invest in those companies whose prices will increase over time.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 11.4% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PHSZXhas an annual expense ratio of 0.86%, which is below the category average of 1.26%. The fund invests in Regeneron Pharmaceuticals and Eli Lilly that are involved in coronavirus vaccine development.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) aims for long-term capital appreciation. The fund invests a minimum of 80% of its assets in common stocks of companies mostly engaged in research, production and distribution of products and services in the healthcare-related industry. This non-diversified fund invests primarily in mid- and large-capitalization companies.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. Specifically, the fund has returned 14.4% over the past three years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRHSXhas an annual expense ratio of 0.76%, which is below the category average of 1.26%. The fund invests in Eli Lilly and AstraZeneca that are involved in coronavirus vaccine development.
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 >>