When markets are going through troubled times, investors often depend on the healthcare sector to protect their valuable investments. Healthcare and related services continue to remain in demand during difficult market conditions and are a safe haven in tough times. Mutual funds are the perfect choice for investors looking to enter this sector since they posses the analytical insight needed to keep abreast of the latest advancements 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 Pharmaceuticals UltraSector (PHPSX) invests in equity securities and derivatives which together should provide daily returns which are 150% of the daily return of the Dow Jones U.S. Pharmaceuticals Index. The balance of the fund’s assets is utilized to purchase money market securities. The healthcare mutual fund returned 5.62% in the last one year period.
The healthcare mutual fund has an expense ratio of 2.73% compared to a category average of 1.51%.
Vanguard Health Care Index (VHCIX) seeks to match the performance of the MSCI U.S. Investable Market Health Care 25/50 index and invests primarily in healthcare stocks. This index consists of stocks of companies of all sizes from this sector. The healthcare mutual fund returned 1.51% in the last one year period.
As of March 2012, this health mutual fund held 298 issues, with 10.20% of its total assets invested in Johnson & Johnson.
Schwab Health Care (SWHFX) invests the majority of its assets in the healthcare sector. It primarily purchases equity securities but may also invest in future contracts. It focuses on investing in domestic firms, but may invest up to 25% of its assets in other countries. The healthcare mutual fund returned -0.94% in the last one year period.
Paul Alan Davis is the fund manager and has managed this healthcare mutual fund since 2006.
T. Rowe Price Health Sciences (PRHSX) seeks capital growth over the long term. The fund invests the majority of its assets in common stocks of companies whose primary operations are related to healthcare products medicine or life sciences. The fund focuses on investing in large and mid-cap firms but may also purchase stock of smaller companies. The healthcare mutual fund returned 6.2% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.82% compared to a category average of 1.51%.
Fidelity Select Medical Delivery (FSHCX) invests in firms engaged in the delivery of health care services. Such companies include those which manage hospitals, nursing homes health maintenance organizations and other firms focusing on delivery of healthcare services. The healthcare mutual fund returned -2.06% over the last one year period.
Andrew Hatem is the fund manager and has managed this healthcare mutual fund since 2009.
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 at http://www.zacks.com/funds.
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