Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Why Health Care’s Rally May Be Just Getting Started
The Fidelity Funds shown do not take into account the 10:1 split that occurred recently. I have FSPHX, and it is up over 22% ytd, not the negative figure showing in chart.
As @Ted and I agree with tech. and health exposure. My particular watch for these two areas is that in the event of a major equity correction; these 2 sectors, as well as the other high fliers in growth will be some of the areas to get picked on the most for profit taking. The big money will come out of the best return areas over the past several years, yes? I'm not concerned at this time; just my open thought here. Also, dependent upon one's available choices at their vendor; one can decide whether to have broad exposure to health or more narrow sectors. Review the holdings and performance carefully. Health and tech. are two sectors where I don't regard expense ratios as a particular "evil". I'll guess the average ER for a managed fund is .7%. One can pay this much, too; for a passive managed etf. Also note that one may already have 15% - 30% exposure to these 2 sectors via an equity growth fund or more broad based equity fund. Perhaps this is your comfort level. ---EXAMPLE: ITOT, I-shares, U.S. equity, broad --- info tech. = 25% --- health = 14% --- finance = 14% --- telecom = 1.8% I've not looked deeper into all holdings with this etf; but included finance and telecom; as there may be additional tech. related inside these areas, too.
Note: To the etf list below, an OMG moment. The current best performance from this list is both a small cap and health, too. A great place to be this year, at this point in time; at least from the year's beginning. In addition to Ted's active fund list, is this list for 47 health related etfs. I set this link with YTD return, but not sure how it will load here or for your use. Do your homework in the healthcare sector and good fortune, as there are lots of choices. We remain 50% of total equity exposure with health and tech. Regards, Catch
Along with others here, I have a "healthy" dose of health care in my active portfolio. CELG has been on a roller coaster, but my basis is so low as to make a sale unpalatable, even when it dropped. Also hold HQL, which has underperformed in recent years. I contacted the PM to express my concern and received no reply. I cannot complain about the 8% distribution plan of this CEF, but I didn't buy it to fill the role of an equity-income fund. Looking for something else and VHT figures in my thinking, along with a fund to capture the biotech sector.
Comments
My particular watch for these two areas is that in the event of a major equity correction; these 2 sectors, as well as the other high fliers in growth will be some of the areas to get picked on the most for profit taking. The big money will come out of the best return areas over the past several years, yes? I'm not concerned at this time; just my open thought here.
Also, dependent upon one's available choices at their vendor; one can decide whether to have broad exposure to health or more narrow sectors. Review the holdings and performance carefully.
Health and tech. are two sectors where I don't regard expense ratios as a particular "evil". I'll guess the average ER for a managed fund is .7%. One can pay this much, too; for a passive managed etf.
Also note that one may already have 15% - 30% exposure to these 2 sectors via an equity growth fund or more broad based equity fund. Perhaps this is your comfort level.
---EXAMPLE: ITOT, I-shares, U.S. equity, broad
--- info tech. = 25%
--- health = 14%
--- finance = 14%
--- telecom = 1.8%
I've not looked deeper into all holdings with this etf; but included finance and telecom; as there may be additional tech. related inside these areas, too.
Note: To the etf list below, an OMG moment. The current best performance from this list is both a small cap and health, too. A great place to be this year, at this point in time; at least from the year's beginning.
In addition to Ted's active fund list, is this list for 47 health related etfs. I set this link with YTD return, but not sure how it will load here or for your use.
Do your homework in the healthcare sector and good fortune, as there are lots of choices.
We remain 50% of total equity exposure with health and tech.
Regards,
Catch
Regards,
Ted
Edit: Yes, the TRP site does say "open to new retail investors", so it's available directly, for sure.
Edit 2: Just tried to buy one share via Schwab. They say "No information found for PRHSX", so that's that.
Regards,
Ted