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 Zacks #1 ranked 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||Total Return YTD|
|ProFunds Biotechnology UltraSector||114.22%|
|Franklin Biotechnology Discovery A||68.63%|
|Fidelity Select Biotechnology||65.66%|
|ProFunds UltraSector Health Care||62.92%|
|Fidelity Select Health Care||56.26%|
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 106.60% over the last one year period.
Michael Neches is the fund manager and has managed this healthcare mutual fund since 2013.
Franklin Biotechnology Discovery A (FBDIX) seeks capital growth. The fund 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 73.41% over the last one year period.
As of September 2013, this mutual fund held 93 issues with 9.29% of its assets invested in Celgene Corporation.
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 76.04% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.79% compared to a category average of 1.45%.
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 50.15% over the last one year period.
As of October 2013, this healthcare mutual fund held 117 issues, with 7.17% of its total assets invested in Johnson & Johnson.
Fidelity Select Health Care (FSPHX) seeks capital growth. The fund 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 healthcare mutual fund returned 55.43% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.78% compared to a category average of 1.45%.
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.
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