Top 5 Zacks #1 Ranked Healthcare Mutual Funds - Best of Funds

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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 .

Invesco Global Health Care A ( GGHCX ) invests primarily in companies from the health care sector. The fund purchases securities from issuers located in at least three countries, including the US. Up to 50% of its assets may be invested in any one country, apart from the US. The healthcare mutual fund has a three year annualized return of 11.77%.

Derek Taner is the fund manager and has managed this healthcare mutual fund since 2005.

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 14.91%.

As of June 2012, this healthcare mutual fund held 300 issues, with 10.43% of its total assets invested in Johnson & Johnson.

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 15.89%.

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%.

Eaton Vance Worldwide Health Sciences A ( ETHSX ) seeks long-term capital appreciation. The fund focuses on investing in medical research and the healthcare sector. It 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 11.79%.

Samuel D. Isaly is the fund manager and has managed this healthcare mutual fund since 1985.

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 8.73%.

The healthcare mutual fund has an expense ratio of 1.28% compared to a category average of 1.49%.

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

(GGHCX): ETF Research Reports

(PHSTX): ETF Research Reports

(SWHFX): ETF Research Reports

(VHCIX): ETF Research Reports

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Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds


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