Top 5 Best Performing Healthcare Mutual Funds Year to Date

Zacks

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 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

53.27%

ProFunds UltraSector Health Care

#1 Strong Buy

29.62%

ProFunds Pharmaceuticals UltraSector

#1 Strong Buy

27.71%

Fidelity Select Biotechnology

#1 Strong Buy

27.37%

Franklin Biotechnology Discovery A

#1 Strong Buy

27.37%


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, it invests in a mix of securities and derivatives.. The healthcare mutual fund is non-diversified and returned 92.06% over the last one year period.

Hratch Najarian is the fund manager and has managed this healthcare mutual fund since 2011.

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 43.25% over the last one year period.

As of January 2013, this healthcare mutual fund held 120 issues, with 7.85% of its total assets invested in Johnson & Johnson.

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 40.38% 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 1.48%.

Fidelity Select Biotechnology (FBIOX) invests heavily in companies whose principal operations are related to research, development and manufacturing in the biotechnology sector. The fund invests in both domestic and foreign securities. The healthcare mutual fund is non-diversified and returned 45.47% over the last one year period.

Rajiv Kaul is the fund manager and has managed this healthcare mutual fund since 2005

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 39.12%.

The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.26% compared to a category average of 1.48%.

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 HCPSX

Read the analyst report on PHPSX

Read the analyst report on FBIOX

Read the analyst report on FBDIX

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