Vanguard Health Care
Vanguard Health Care (VGHCX) has stood out as a winner for a long time. Legendary manager Ed Owens has retired from the fund, but manager Jean Hynes is continuing to lead this fund in the right direction.
VGHCX mostly invests in large-cap names, which should not be a surprise given the large $29.3 billion asset base. For the most part, this is a story of patient stock picking, with turnover at a mere 8% annually.
About 78% of this fund is invested in U.S. stocks, with 22% invested outside the U.S. Current top holdings include: Merck (MRK), UnitedHealth Group (UNH), Roche (RHHBY), Amgen (AMGN) and Forest Laboratories (FRX).
The mutual fund is up 30.5% year-to-date, trumping the market by nearly 50%, and has averaged roughly 11% returns annually over the past 10 years, according to Morningstar data.
As is typical with funds from Vanguard, expenses are minimal at 0.35% annually, or $35 for ever $10,000 invested.