Zacks #1 Ranked Healthcare Mutual Funds - Best of Funds

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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) invests the majority of its assets in companies whose principal operations include production, design and sales of health care related products or services. The fund focuses on acquiring common stocks and purchases both domestic and foreign securities. The non-diversified healthcare mutual fund returned 26.92% over the last five years.

The fund has an expense ratio of 0.78% as compared to category average of 1.44%.

Eaton Vance Worldwide Health Sciences A (ETHSX) seeks capital appreciation over the long term. It invests largely in companies from the health sciences sector. A minimum of 25% of its assets must be invested in medical research and the healthcare sector and a maximum of 5% of its assets is invested in royalty bonds. The healthcare mutual fund returned 18.57% over the last five years.

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

Vanguard Health Care Investor (VGHCX) invests a lion's share of its assets in companies involved in development and distribution of healthcare related services and products. Apart from companies including medical supply firms, hospital operators, pharmaceuticals, and health care facilities, the fund also invests in medical, diagnostic, and biochemical companies. The healthcare mutual fund returned 21.92% over the last five years.

As of December 2013, this fund held 105 issues with 5.41% of its assets invested in Merck & Co Inc.

BlackRock Health Sciences Opportunities Portfolio Investor A (SHSAX) seeks capital appreciation over the long run. It invests a major portion of its assets in healthcare and related companies. These firms include health care equipment and suppliers, health care providers and services, biotechnology companies and also pharmaceuticals. The fund also invests in foreign companies. The non-diversified healthcare mutual fund returned 21.14% over the last five years.

The fund has an expense ratio of 1.21% as compared to category average of 1.44%.

VALIC Company I Health Sciences (VCHSX) invests the majority of its assets in common stocks of healthcare products, medicine or life sciences related companies. It focuses mainly on investing in large and mid-cap companies. A maximum of 35% of its assets is invested foreign companies. The healthcare mutual fund returned 28.08% over the last five years.

Taymour R. Tamaddon is the fund manager and has managed this healthcare mutual fund since 2013.

To view the Zacks Rank and past performance of all health mutual funds, investors can c lick 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.

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.


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



This article appears in: Investing , Mutual Funds
More Headlines for: FSPHX , ETHSX , VGHCX , SHSAX , VCHSX


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