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||76.53%|
|Franklin Biotechnology Discovery A||#1 Strong Buy||50.67%|
|Fidelity Select Biotechnology||#1 Strong Buy||50.52%|
|ProFunds UltraSector Health Care||#2 Buy||45.24%|
|Rydex Biotechnology||#1 Strong Buy||42.02%|
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 98.80% over the last one year period.
Hratch Najarian is the fund manager and has managed this healthcare mutual fund since 2011.
Franklin Biotechnology Discovery A (FBDIX) invests the majority of its assets in companies involved in biotechnology and discovery research activities. Additionally, the company may invest a maximum of 20% of its assets in securities issued by foreign or domestic companies. The healthcare mutual fund returned 51.01% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.20% compared to a category average of 1.41%.
Fidelity Select Biotechnology (FBIOX) seeks capital growth. The fund 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 56.44% over the last one year period.
Rajiv Kaul is the fund manager and has managed this healthcare mutual fund since 2005
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 healthcare mutual fund returned 54.43% over the last one year period.
As of April 2013, this healthcare mutual fund held 117 issues, with 8.27% of its total assets invested in Johnson & Johnson.
Rydex Biotechnology (RYOIX) invests in companies whose principal operations are related to the biotechnology sector. Investments are made in companies which are traded on domestic exchanges as well as in derivatives. The non-diversified healthcare mutual fund has a one year annualized return of 45.19%.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.35% compared to a category average of 1.41%.
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.