Health Care SPDR
Another option for investors seeking a bit more diversity across the whole sector is an exchange-traded fund like the Health Care SPDR (XLV).
Many investors enjoy the fact that unlike mutual funds, which are sold at the end of the trading day, ETFs trade over an exchange just like stocks. XLV also is larger than FSPHX, with about $7.4 billion in assets under management.
The ETF is fairly well diversified, with holdings including medical products companies like Johnson & Johnson (JNJ), managed care providers like UnitedHealth Group (UNH), large biotechs such as Celgene (CELG) and pharmacy benefit firms like Express Scripts (ESRX).
XLV has returned roughly 12% annually in the past half-decade and sports a low expense ratio of just 0.18%.