The healthcare sector is one of the most desirable avenues for
parking investments when markets are headed south. The demand for
such services usually remains unchanged even during an economic
downturn and investments in the sector provide sufficient
protection to the capital invested. Several pharmaceutical
companies also provide regular dividends, which can help mitigate
losses from falling share prices. Healthcare mutual funds provide
the perfect avenue for investors looking to invest in this
sector.
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, investors can
click here to see the complete list of funds
.
Fidelity Select Health Care
(FSPHX) seeks capital growth. The fund invests the majority of its
assets in companies whose principal operations include production,
design and sales of health care related products or services. It
focuses on acquiring common stocks and purchases both domestic and
foreign securities. The healthcare mutual fund has a three year
annualized return of 19.39%.
The healthcare mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.80% compared to a category average
of 1.51%.
Schwab Health Care
(SWHFX) invests heavily 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 15.87%.
Paul Alan Davis is the fund manager and has managed this
healthcare mutual fund since 2006.
T. Rowe Price Health Sciences
(PRHSX) seeks capital growth over the long term. The fund invests
the majority of its assets in common stocks of companies whose
primary operations are related to healthcare products medicine or
life sciences. The fund focuses on investing in large and mid-cap
firms. The healthcare mutual fund has a three year annualized
return of 23.97%.
The healthcare mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.82% compared to a category average
of 1.51%.
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 has a three year annualized return of
19.15%.
As of January 2012, this health mutual fund held 28 issues, with
15.60% of its total assets invested in Johnson & Johnson.
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 has a three year
annualized return of 15.33%.
Ryan E. Ludt is the fund manager and has managed this healthcare
mutual fund since 2004.
To view the Zacks Rank and past performance of all health mutual
funds, investors can
click here to see the complete list of funds
.
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
.
View All Zacks #1 Ranked Mutual Funds
(FSPHX): ETF Research Reports
(PHPSX): ETF Research Reports
(PRHSX): ETF Research Reports
(SWHFX): ETF Research Reports
(VHCIX): ETF Research Reports
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