Benzinga - by Zacks, Benzinga Contributor.
Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to market conditions and thus offer sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends.
Companies that consistently pay out dividends are financially stable and generate steady cash flows, irrespective of market conditions. Mutual funds are perfect for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below, we share with you three healthcare mutual funds, viz., Fidelity Select Health Care Services Portfolio (NASDAQ: FSHCX), Vanguard Health Care Fund (NASDAQ: VGHCX) and Fidelity Select Health Care (NASDAQ: FSPHX). Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future.
Fidelity Select Health Care Services Portfolio seeks capital appreciation. FSHCX invests in common stocks of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services.
Fidelity Select Health Care Services Portfolio has a three-year annualized return of 6%. As of November 2023, FSHCX held 26 issues, with 24.6% of its assets invested UnitedHealth Group Inc.
Vanguard Health Care Fund seeks long-term growth of capital and dividend income. VGHCX invests in common stocks of companies in a variety of segments of the health-care industry. Its selections may include pharmaceutical firms, designers and manufacturers of medical equipment and supplies, operators of hospitals and other healthcare facilities, and biotechnological researchers.
Vanguard Health Care Fund has three-year annualized returns of 7.9%. VGHCX has an expense ratio of 0.36% compared with the category average of 1.04%.
Fidelity Select Health Care fund seeks capital appreciation. FSPHX invests most of its assets in in common stocks of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine.
Fidelity Select Health Care Fundhas three-year annualized returns of 2.1%. Edward Yoon has been the fund manager of FSPHX since October 2008.
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