Schwab Health Care Fund
If you’re not starting out with a ton of money, the Schwab Health Care Fund (MUTF:SWHFX) can get you health care mutual fund exposure with a minimum investment of just $100.
Like Vanguard Health Care, about half of SWHFX is invested in pharmaceuticals, with top holdings Merck, Bristol-Myers Squibb (NYSE:BMY) and Pfizer (each above 4%) making up a veritable Who’s Who of Big Pharma. It also has double-digits weightings in biotech, health care providers and equipment and supplies.
Managers Larry Mano and Paul Alan Davis have led Schwab Health Care to 15% annualized gains in the past three years, and SWHFX is up nearly 10% year-to-date, earning the fund its own four-star rating. Fees also come to a reasonable 0.81%, and a low 24% turnover rate shouldn’t weigh on returns, either.