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 pharmaceutical 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 the 5 best performing healthcare mutual funds year to date. To view the Zacks Rank and past performance of all healthcare funds, investors can click here to see the complete list of funds.
| Mutual Fund | Zacks Rank | Total Return YTD |
| ProFunds Biotechnology UltraSector | #1 Strong Buy | 16.66% |
| ProFunds Pharmaceuticals UltraSector | #4 Sell | 13.34% |
| ProFunds UltraSector Health Care | #3 Hold | 13.02% |
| Franklin Biotechnology Discovery A | #2 Buy | 11.01% |
| Prudential Jennison Health Sciences A | #5 Strong Sell | 10.56% |
Hratch Najarian is the fund manager and has managed this healthcare mutual fund since 2011.
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 healthcare mutual fund returned 33.62% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.73% compared to a category average of 1.52%.
ProFunds UltraSector Health Care (HCPSX) 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 healthcare mutual fund returned 31.93% over the last one year period.
As of October 2012, this healthcare mutual fund held 119 issues, with 5.99% of its total assets invested in Johnson & Johnson.
Franklin Biotechnology Discovery A (FBDIX) seeks capital growth. The fund invests the majority of its assets in equity shares of biotechnology companies and research entities. The fund may also invest some of its assets in non-biotechnology companies. The healthcare mutual fund has a one year annualized return of 27.14%.
Evan McCulloch is the fund manager and has managed this healthcare mutual fund since 1997.
Prudential Jennison Health Sciences A (PHLAX) invests heavily in equity and related securities. The fund’s portfolio may include pharmaceutical companies, biotech firms, service providers and medical device manufacturers. It may also invest in foreign securities. The healthcare mutual fund returned 23.37% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.23% compared to a category average of 1.52%.
To view the Zacks Rank and past performance of all healthcare 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.
Read the analyst report on BIPSX
Read the analyst report on PHPSX
Read the analyst report on HCPSX
Read the analyst report on FBDIX
Read the analyst report on PHLAX
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