Vanguard Health Care
Vanguard Health Care (MUTF:VGHCX) is a perennial winner that has had to shutter its doors several times because of heavy inflows. But those doors are open once more, and investors have the chance to get in on a low-price, strong performer.
Half of VGHCX’s 80-plus holdings are dedicated to pharmaceuticals, with heavy weightings given to stocks like Merck & Co. (NYSE:MRK), Pfizer (NYSE:PFE) and Forest Laboratories (NYSE:FRX). VGHCX also throws about 15% of its weight behind managed care — UnitedHealth Group (NYSE:UNH) is the fund’s second-largest holding — and about 10% into biotech, with Amgen (NASDAQ:AMGN) the fund’s sixth-largest holding.
Manager Edward Owens has been at the helm since Vanguard Health Care’s inception in 1984 and has led the fund to 16% annual gains. The past year hasn’t been as glamorous, though VGHCX’s 6% gains still have outperformed a flat S&P 500. Also appealing: the fund’s four-star Morningstar rating, a cellar-dwelling 8% turnover ratio and a screaming deal in expenses at just 0.35%. Minimum investment is $3,000.