When markets are passing through choppy waters, investors often
rely on the healthcare sector to safeguard their investments. This
is because the demand for healthcare services does not vary with
market conditions, making them a safe haven during difficult times.
Many pharma companies also generate regular dividends, which go a
long way in softening the blow dealt by plummeting share prices.
Mutual funds are the perfect choice for investors looking to enter
this sector since they possess the advantages of wide
diversification and analytical insight.
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
.
Eaton Vance Worldwide Health Sciences A
(
ETHSX
) focuses on investing in medical research and the healthcare
sector. The fund invests the majority of its assets in companies
which are primarily involved in activities involving new scientific
developments in healthcare. The healthcare mutual fund has a three
year annualized return of 11.16%.
The healthcare mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.96% compared to a category average
of 1.49%.
Prudential Jennison Health Sciences A
(
PHLAX
) seeks capital growth over the long term. The fund invests a large
share of its assets in firms from the health sciences domain.
Equity and related securities of pharma companies, biotech firms,
service providers and medical device manufacturers constitute its
major investments. The healthcare mutual fund has a three year
annualized return of 21.98%.
David A. Chan is the fund manager and has managed this
healthcare mutual fund since 1999.
Schwab Health Care
(
SWHFX
) invests heavily in the healthcare sector. The fund 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 15.22%.
The healthcare mutual fund has a minimum initial investment of
$100 and an expense ratio of 0.81% compared to a category average
of 1.49%.
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 14.08%.
As of June 2012, this healthcare mutual fund held 300 issues,
with 10.43% of its total assets invested in Johnson &
Johnson.
Putnam Global Health Care A
(
PHSTX
) invests primarily in companies from the health care sector.
Common stocks of large and mid cap firms across the world
constitute the majority of his investments. The fund may purchase
both growth and value stocks. The healthcare mutual fund has a
three year annualized return of 8.02%.
Kelsey Chen is the fund manager and has managed this healthcare
mutual fund since 2005.
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
(ETHSX): ETF Research Reports
(PHLAX): ETF Research Reports
(PHSTX): ETF Research Reports
(SWHFX): ETF Research Reports
(VHCIX): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment
Research