When markets are going through troubled times, 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. Mutual funds are the perfect choice for investors looking to enter this sector since they possess the analytical insight needed to keep abreast of the latest advancements in this sector.
Below we will share with you 5 top rated healthcare 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, investors can click here to see the complete list of funds.
Vanguard Health Care Index (VHCIX) seeks to match the performance of the MSCI U.S. Investable Market Health Care 25/50 index and invests primarily in healthcare stocks. This index consists of stocks of companies of all sizes from this sector. The healthcare mutual fund returned 10.58% in the last one year period.
The healthcare mutual fund has an expense ratio of 0.19% compared to a category average of 1.57%.
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 23.36% in the last one year period.
As of October 2011, this health mutual fund held 28 issues, with 15.96% of its total assets invested in Johnson & Johnson.
Fidelity Select Medical Equipment & Systems (FSMEX) seeks capital growth by investing heavily in the healthcare sector. The fund primarily invests in securities of companies which produce, distribute or develop medical equipment, devices and related technologies. The healthcare mutual fund returned -3.42% in the last one year period.
Edward Lee Yoon is the fund manager and he has managed this healthcare mutual fund since 2007.
Manning & Napier Life Sciences (EXLSX) invests heavily in securities of companies from the life sciences sector. Domestic and foreign equity, ADRs and U.S. dollar denominated foreign securities make up the majority of its assets. The healthcare mutual fund returned -7.37% in the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.09% compared to a category average of 1.57%.
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 returned 11.53% in the last one year period.
Paul Alan Davis is the fund manager and he has managed this healthcare mutual fund since 2006.
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.
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