T. Rowe Health Sciences Fund
The T. Rowe Health Sciences Fund (MUTF:PRHSX) is a heavily diversified health care mutual fund (it holds 221 securities) with a slight lean toward biotech stocks at about 33% of net assets. Still, services come in around 29%, pharma at 20% and products and devices at around 14%, so you’re still getting healthy doses of the major industries.
The average market cap of PRHSX’s holdings is only around $7 billion because the fund relies on numerous small and midsize companies to help fuel its growth. Alexion Pharmaceuticals (NASDAQ:ALXN) makes up a whopping 7.5% of the portfolio — the next biggest stock holdings are Catamaran (NASDAQ:CTRX) at just under 3% and Valeant Pharmaceuticals (NYSE:VRX) at 2.6%.
PRHSX has averaged 13% annual returns since its inception in 1995. Kris Jenner has been running the fund since 2000 and has racked up double-digit gains in the three-, five- and 10-year metrics. This year has been golden for PRHSX, with the fund up almost 25% since Jan. 1, earning a five-star rating. While not as exaggerated as Vanguard, the fund’s 23.3% turnover and 0.82% in expenses are low. PRHSX requires a $2,500 minimum investment.