Markets

Zacks #1 Ranked Healthcare Mutual Funds - Best of Funds

Various market performance charts

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.

ProFunds Biotechnology UltraSector (BIPSX) seeks daily returns which are 150% of the daily return of the Dow Jones U.S. Biotechnology Index. To achieve the desired results, this fund invests in a mix of securities as well as derivatives. This index tracks the performance of biotechnology stocks in the domestic equity markets. The non-diversified healthcare fund returned 28.72% over the last one year period.

The fund has an expense ratio of 2.68% as compared to category average of 2.06%.

Schwab Health Care (SWHFX) invests the majority of its assets in companies related to the healthcare sector. A majority of the investment is made in domestic companies by using Schwab Equity Rating. A maximum of 25% of its assets may also be invested in foreign countries. The non-diversified healthcare fund returned 20.74% over the last one year period.

As of January 2014, this fund held 99 issues with 6.92% of its assets invested in Pfizer Inc.

ProFunds UltraSector Health Care (HCPSX) seeks daily returns which are 150% of the daily return of the Dow Jones U.S. Biotechnology Index. The fund invests in equity securities and derivatives that in the opinion of the fund advisors possess daily return characteristics identical to one and a half times the daily return of the Dow Jones U.S. Health Care Index. The non-diversified healthcare fund returned 28.02% over the last one year period.

Michael Neches is the fund manager and has managed this fund since 2013.

ProFunds Pharmaceuticals UltraSector (PHPSX) seeks daily returns which are 150% of the daily return of the Dow Jones U.S. Pharmaceuticals Index. To achieve the desired results, it invests in a mix of securities and derivatives. The balance of the fund's assets is utilized to purchase money market securities. The non-diversified healthcare fund returned 27.50% over the last one year period.

Michael Neches is the fund manager and has managed this fund since 2013.

Fidelity Select Medical Equipment & Systems (FSMEX) invests a lion's share of its assets in companies that are primarily involved in medical equipment and devices and related technologies sector. The fund invests in both US and non-US companies. The non-diversified healthcare fund returned 25.25% over the last one year period.

The fund has an expense ratio of 0.79% as compared to category average of 1.40%.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

View All Zacks #1 Ranked Mutual Funds

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (BIPSX): Fund Analysis Report

Get Your Free (FSMEX): Fund Analysis Report

Get Your Free (HCPSX): Fund Analysis Report

Get Your Free (PHPSX): Fund Analysis Report

Get Your Free (SWHFX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

HCPSX FSMEX SWHFX BIPSX PHPSX

Other Topics

Mutual Funds

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More