Healthcare Stocks for Retirement: Fidelity Select Health Care Portfolio (FSPHX)
For those investors looking for an active approach to owning healthcare stocks, the Fidelity Select Health Care Portfolio (MUTF:FSPHX) is a great choice. FSPHX’s goal is to outperform the popular and broad MSCI US Investable Market Health Care 25/50. It does that by eschewing some of the typical conventions.
For one thing, FSPHX owns a few international names such as Medtronic plc. Ordinary Shares (NYSE:MDT). Moreover, biotech features prominently in the mutual fund’s portfolio. Finally, the fund’s managers are willing to trade and shift the fund’s holdings as conditions change. This allows FSPHX to have a very high active share. That’s basically a measure of whether or not a fund’s managers are doing anything or actually just riding an index.
What that’s really done is allow FSPHX to return nearly 20% annually over the past five years and nearly 16% since its inception back in 1981. That’s a lot of years of beating the market and generating real returns.
For investors looking for an active approach to owning healthcare stocks, FSPHX is the top draw.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.