as distributors such as AmerisourceBergen Corp. and McKesson Corp. Annualized returns for Schwab Health Care Fund have been more than 21% for the past three years.
“Before you invest in a healthcare fund,” says Christopher Davis, an analyst at Morningstar, “compare its holdings with those of the mutual funds you already have.” If you already own the likes of Amgen or Pfizer, don’t double up — a specialized fund that owns other stocks may give you a shot at even healthier returns.
TOP HEALTHCARE FUNDS
|Fund Name:||Ticker||1-Year Ann. Total Return||3-Year Ann. Total Return||5-Year Ann. Total Return||Minimum Initial Investment||Toll- Free Number|
|Fidelity Select Medical Delivery||FSHCX||2.43%||28.44%||17.39%||$2,500||800-343-3548|
|Schwab Health Care||SWHFX||6.31||21.51||12.41||2,500||800-435-4000|
|Alger Health Sciences A||AHSAX||7.01||15.52||—||1,000||800-992-3863|
|T. Rowe Price Health Sciences||PRHSX||8.99||11.93||10.86||2,500||800-638-5660|
|Fidelity Select Pharmaceuticals||FPHAX||14.62||8.76||3.93||2,500||800-343-3548|
*Based on 3-year perfomance. As of Sept. 22, 2006. Source: Morningstar Inc.