When markets are sailing through troubled waters, investors often depend on the healthcare sector to protect their valuable investments. Healthcare and related services continue to remain in demand during difficult market conditions and are a safe haven in tough times. Several pharmaceutical companies also pay out regular dividends, which help in combating losses from falling share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they posses the analytical insight needed to keep abreast of the latest advancements in this sector.
Below we will share with you 5 top rated health funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all health funds, then click here.
Vanguard Health Care Index (VHCIX) seeks to match the performance of the MSCI U.S. Investable Market Health Care Index. This index consists of healthcare stocks of companies of all sizes. This includes firms which manufacture medical equipment and provide related services. The health fund returned 10.7% in the last one year period.
The health fund has an expense ratio of 0.28% compared to a category average of 1.97%.
BlackRock Health Sciences Opportunities A (SHSAX) invests at least 80% of its assets in health science companies and related firms. The fund purchases common and preferred stock, convertible securities and also invests in derivatives. Up to 20% of its assets may be invested in instruments form other sectors. The health fund returned 13.41% in the last one year period and has a five year annualized return of 7.23%.
The Fund Manager is Thomas Callan and has managed this health fund since 2005.
Putnam Global Health Care A (PHSTX) seeks long-term capital growth. The fund invests primarily in companies from the health care sector across the globe. It focuses on acquiring common stocks of large and mid-cap companies. The health fund returned 3% over the last one year period.
As of March 2010, this health fund held 71 issues, with 6.64% of its total assets invested in Pfizer Inc.
Invesco Health Sciences A (HCRAX) invests the majority of its assets in health sciences companies worldwide. It focuses on purchasing common stocks but may also invest in derivatives. Up to 50% of its assets may be invested in foreign securities, including those issued from emerging markets. The health fund has a five year annualized return of 2.13%.
The health fund has a minimum initial investment of $1,000 and an expense ratio of 1.65% compared to a category average of 1.97%.
Schwab Health Care (SWHFX) seeks capital appreciation by investing heavily in the healthcare sector. The fund primarily purchase 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 health fund returned 11.4% over the last one year period and has a ten year annualized return of 3.77%.
Larry Mano is the fund manager and he has managed this health fund since 2000.
To view the Zacks Rank and past performance of all health 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.
