Vanguard Health Care Fund
Click to Enlarge Assets: $37.1 billion
Expenses: 0.35%, or $3.50 on every $1,000 you invest
YTD Performance: +2%
10-Year Performance: An average of +11.2% per year.
Want to play low-risk U.S. equity but don’t want the vanilla approach of simply buying the entire S&P 500? Well, the Vanguard Health Care Fund (VGHCX) is your answer.
In addition to healthcare being a growth business thanks to Obamacare unlocking new “customers” with the means to pay and the aging baby boomer demographic, it’s also important to note that healthcare is a recession-proof sector. After all, you will cut back on a lot of other spending categories before you stop buying treatments that keep you healthy or improve the quality of your life.
That’s where VGHCX comes in. This Vanguard mutual fund promises to invest at least 80% of its assets in healthcare companies, and frequently it’s fully invested in the sector. Current top holdings include pharmaceutical giant Merck (MRK), insurer UnitedHealth Group (UNH) and medical device company McKesson (MCK) among others.
Read more about the Vanguard Health Care Fund here.