Health Care Sector: Overview and Funds

Included in the health care sector are companies that provide health care supplies and services and companies that research or produce health care products. Examples of these health care companies and organizations are hospitals, managed health care organizations, health care technology consulting firms, pharmaceutical companies and life sciences companies. The two major industry groups within health care are health care equipment and services and pharmaceuticals, biotechnology and life sciences.

Health Care Equipment and Services

This industry group includes companies that provide equipment, supplies or technology for health care purposes. This industry group also includes health care providers. Health care providers include hospitals, managed health care organizations and companies that provide support services, such as payroll and billing, for health care facilities. Health care technology includes companies that provide technology consulting or software applications specifically tailored to the healthcare industry.

Industry

Sub-IndustryDescription

Health Care Equipment & Supplies

Health Care EquipmentCompanies that make health care equipment and devices. This includes companies that make medical instruments, orthopedic devices and diagnostic equipment. Examples of health care equipment include x-ray machines, MRI machines and dialysis machines.
Health Care SuppliesCompanies that make health care supplies and medical products and that are not classified elsewhere, such as companies that produce eye care products, hospital supplies and syringes/needles.
Health Care Providers & ServicesHealth Care DistributorsCompanies that distribute and wholesale health care products, but do not produce these products or sell them directly to consumers.
Health Care ServicesCompanies that provide patient health services, such as dialysis centers, lab testing and pharmacy management. This also includes companies that provide support services to health care providers, including staffing, outsourcing, clerical services, marketing and sales and debt collection.
Health Care FacilitiesHealth care facilities, including hospitals, nursing homes, rehab centers and animal hospitals.
Managed Health CareCompanies that operate Health Maintenance Organizations (HMO) and other managed health care plans. An HMO plan offers health care coverage to its member through a network of health care providers, such as doctors and hospitals.
Health Care TechnologyHealth Care TechnologyCompanies that provide information technology (IT) services to health care providers, including software, systems, IT consulting and internet applications.

Examples of companies that provide health care equipment and services include Aetna, Boston Scientific, McKesson, Cerner, Humana and Bristol-Myers Squibb.

Pharmaceuticals, Biotechnology and Life Sciences

Companies within this industry group develop genetic therapy products, such as genetic engineering; research or produce pharmaceutical drugs for a variety of illnesses or conditions or provide services and supplies, such as clinical trials or research, for other biotech and pharmaceutical companies.

Industry

Sub-IndustryDescription

Biotechnology

BiotechnologyCompanies that research, develop or market genetic analysis or genetic engineering products. This includes companies that provide protein-based therapies to treat diseases, such as cancer or diabetes. Protein therapy is similar to gene therapy, and it works by delivering specific amounts of proteins to the body of patients that lack the correct amounts due to illness.
PharmaceuticalsPharmaceuticalsCompanies that research, develop or produce pharmaceutical drugs, including veterinary drugs.
Life Sciences Tools & ServicesLife Sciences Tools & ServicesCompanies that provide analytical tools, supplies, clinical trial services and research services for other pharmaceutical or biotechnology companies.

Examples of companies in this industry include Merck, Pfizer, Amgen, Gilead Sciences and Allergan.

Health Care Sector ETFs and Mutual Funds

Listed below are over 130 mutual funds, index funds and ETFs that track the healthcare industry or specific sub-industries, such as medical equipment or biotechnology. A majority of the funds track globally or within the United States, and their expense ratios vary from 0.09% to 2.81%.

Name

SymboExpense Ratio

Vanguard Health Care ETF

VHT0.09%

Vanguard Health Care Index Fund Admiral Shares

VHCIX0.10%

Fidelity MSCI Health Care Index ETF

FHLC0.12%

Health Care Select Sector SPDR ETF

XLV0.14%

PowerShares S&P SmallCap Health Care ETF

PSCH0.29%

Vanguard Health Care Admiral Shares

VGHAX0.29%

Vanguard Health Care Investor Class

VGHCX0.34%

SPDR S&P Biotech ETF

XBI0.35%

Market Vectors Biotech ETF

BBH0.35%

SPDR S&P Pharmaceuticals ETF

XPH0.35%

Market Vectors Pharmaceutical ETF

PPH0.35%

SPDR S&P Health Care Services ETF

XHS0.35%

SPDR S&P Health Care Equipment ETF

XHE0.35%

Guggenheim S&P 500 Equal Weight Health Care ETF

RYH0.40%

SPDR S&P International Health Care Sector ETF

IRY0.40%

iShares U.S. Healthcare ETF

IYH0.43%

iShares U.S. Medical Devices ETF

IHI0.43%

iShares U.S. Pharmaceuticals ETF

IHE0.43%

iShares U.S. Healthcare Providers ETF

IHF0.43%

Direxion Daily S&P Biotech Bear 1X ETF

LABS0.46%

iShares Global Healthcare ETF

IXJ0.47%

iShares Nasdaq Biotechnology

IBB0.48%

WisdomTree Japan Hedged Health Care ETF

DXJH0.48%

ALPS Medical Breakthroughs ETF

SBIO0.50%

John Hancock Multifactor Health Care ETF

JHMH0.50%

Market Vectors Generic Drugs ETF

GNRX0.55%

PowerShares Dynamic Pharmaceuticals ETF

PJP0.56%

PowerShares Dynamic Biotech & Genome ETF

PBE0.57%

First Trust NYSE Arca Biotechnology ETF

FBT0.58%

PowerShares DWA Healthcare Momentum

PTH0.60%

Franklin Biotechnology Discovery Fund Class R6

FRBRX0.60%

First Trust Health Care AlphaDEX ETF

FXH0.62%

Fidelity® Select Biotechnology

FBIOX0.74%

Fidelity® Select Health Care

FSPHX0.74%

Prudential Jennison Health Sciences Fund Class Q

PHLQX0.74%

Franklin Biotechnology Discovery Advisor Class

FTDZX0.75%

T. Rowe Price Health Sciences

PRHSX0.76%

Fidelity Advisor® Biotechnology Fund Class I

FBTIX0.77%

Fidelity® Select Medical Equipment & Systems

FSMEX0.77%

Fidelity Advisor® Health Care Fund Class I

FHCIX0.78%

Janus Global Life Sciences Fund Class I

JFNIX0.78%

Loncar Cancer Immunotherapy ETF

CNCR0.79%

Fidelity® Select Pharmaceuticals Portfolio

FPHAX0.79%

Fidelity® Select Health Care Services Portfolio

FSHCX0.79%

Invesco Global Health Care Fund Class Y

GGHYX0.79%

Schwab Health Care

SWHFX0.79%

Direxion Daily Pharmaceutical & Medical Bear 2X ETF

PILS0.81%

Direxion Daily Pharmaceutical & Medical Bull 2X ETF

PILL0.81%

Prudential Jennison Health Sciences Fund Class Z

PHSZX0.83%

BioShares Biotechnology Clinical Trials ETF

BBC0.85%

Janus Global Life Sciences Fund Class D

JNGLX0.85%

Putnam Global Health Care Fund Class Y

PHSYX0.85%

BioShares Biotechnology Products ETF

BBP0.86%

Hartford Healthcare HLS Fund Class IA

HIAHX0.86%

BlackRock Health Sciences Opportunities Institutional Class

SHSSX0.88%

Hartford Healthcare Fund Class Y

HGHYX0.90%

ProShares Ultra Nasdaq Biotechnology

BIB0.95%

ProShares UltraShort Nasdaq Biotechnology

BIS0.95%

ProShares Ultra Health Care

RXL0.95%

ProShares UltraPro Nasdaq Biotechnology

UBIO0.95%

ProShares UltraPro Short Nasdaq Biotechnology

ZBIO0.95%

ARK Genomic Revolution Multi-Sector ETF

ARKG0.95%

ProShares UltraShort Health Care

RXD0.95%

Janus Global Life Sciences Fund Class T

JAGLX0.95%

Direxion Daily S&P Biotech Bear 3X ETF

LABD0.96%

Direxion Daily Healthcare Bear 3X ETF

SICK0.96%

Direxion Daily S&P Biotech Bull 3X ETF

LABU0.97%

Direxion Daily Healthcare Bull 3X ETF

CURE1.00%

Franklin Biotechnology Discovery Fund Class A

FBDIX1.00%

Hartford Healthcare Fund Class I

HGHIX1.01%

Hartford Healthcare Fund Class R5

HGHTX1.01%

Fidelity Advisor® Health Care Fund Class A

FACDX1.04%

Fidelity Advisor® Biotechnology Fund Class A

FBTAX1.04%

Invesco Global Health Care Fund Class A

GGHCX1.04%

Invesco Global Health Care Investor Class

GTHIX1.04%

Janus Global Life Sciences Fund Class A

JFNAX1.04%

Alger Health Sciences Fund Class Z

AHSZX1.08%

Live Oak Health Sciences

LOGSX1.08%

Deutsche Health and Wellness Fund Class S

SCHLX1.08%

VALIC Company I Health Sciences

VCHSX1.09%

AllianzGI Health Sciences Institutional Class

HLHIX1.10%

Putnam Global Health Care Fund Class A

PHSTX1.10%

Deutsche Health and Wellness Institutional Class

SUHIX1.10%

Delaware Healthcare Fund Class I

DLHIX1.11%

Hartford Healthcare HLS Fund Class IB

HBGHX1.11%

Prudential Jennison Health Sciences Fund Class A

PHLAX1.13%

Janus Global Life Sciences Fund Class S

JFNSX1.15%

BlackRock Health Sciences Opportunities Service Class

SHISX1.15%

BlackRock Health Sciences Opportunities Investor A Shares

SHSAX1.15%

Eaton Vance Worldwide Health Sciences Fund Class I

EIHSX1.19%

Hartford Healthcare Fund Class A

HGHAX1.28%

Fidelity Advisor® Health Care Fund Class T

FACTX1.30%

Hartford Healthcare Fund Class R4

HGHSX1.30%

Alger Health Sciences Fund Class A

AHSAX1.31%

Eventide Healthcare & Life Sciences Fund Class I

ETIHX1.33%

Prudential Jennison Health Sciences Fund Class R

PJHRX1.33%

Rydex Biotechnology Investor Class

RYOIX1.33%

Fidelity Advisor® Biotechnology Fund Class T

FBTTX1.34%

Rydex Health Care Investor Class

RYHIX1.34%

Putnam Global Health Care Fund Class R

PHSRX1.35%

Deutsche Health and Wellness Fund Class A

SUHAX1.35%

Delaware Healthcare Fund Class A

DLHAX1.36%

ICON Healthcare Fund Class S

ICHCX1.36%

Kinetics Medical No Load

MEDRX1.39%

Eaton Vance Worldwide Health Sciences Fund Class A

ETHSX1.44%

BlackRock Health Sciences Opportunities Fund Class R

BHSRX1.45%

AllianzGI Health Sciences Fund Class A

RAGHX1.46%

Eventide Healthcare & Life Sciences Fund Class N

ETNHX1.53%

Eventide Healthcare & Life Sciences Fund Class A

ETAHX1.58%

Rydex Biotechnology Fund Class A

RYBOX1.58%

Rydex Health Care Fund Class A

RYHEX1.59%

Putnam Global Health Care Fund Class M

PHLMX1.60%

Delaware Healthcare Fund Class R

DLRHX1.61%

Hartford Healthcare Fund Class R3

HGHRX1.61%

ICON Healthcare Fund Class A

ICHAX1.62%

Kinetics Medical Fund Advisor Class A

KRXAX1.64%

Eaton Vance Worldwide Health Sciences Fund Class R

ERHSX1.69%

Franklin Biotechnology Discovery Fund Class C

FBTDX1.75%

Janus Global Life Sciences Fund Class C

JFNCX1.76%

Fidelity Advisor® Biotechnology Fund Class C

FBTCX1.79%

Fidelity Advisor® Health Care Fund Class C

FHCCX1.79%

Invesco Global Health Care Fund Class B

GTHBX1.79%

Invesco Global Health Care Fund Class C

GTHCX1.79%

Saratoga Health & Biotechnology Fund Class I

SBHIX1.81%

Fidelity Advisor® Biotechnology Fund Class B

FBTBX1.82%

Prudential Jennison Health Sciences Fund Class B

PHLBX1.83%

Prudential Jennison Health Sciences Fund Class C

PHLCX1.83%

Rydex Biotechnology Fund Class H

RYOAX1.83%

Fidelity Advisor® Health Care Fund Class B

FAHTX1.85%

Putnam Global Health Care Fund Class C

PCHSX1.85%

Putnam Global Health Care Fund Class B

PHSBX1.85%

Rydex Health Care Fund Class H

RYHAX1.85%

BlackRock Health Sciences Opportunities Investor C Shares

SHSCX1.87%

BlackRock Health Sciences Opportunities Investor B Shares

SHSPX1.95%

Hartford Healthcare Fund Class C

HGHCX2.02%

Alger Health Sciences Fund Class C

AHSCX2.08%

Alger Health Sciences Fund Class B

AHSBX2.09%

Deutsche Health and Wellness Fund Class C

SUHCX2.09%

Delaware Healthcare Fund Class C

DLHCX2.11%

Kinetics Medical Fund Advisor Class C

KRXCX2.14%

Hartford Healthcare Fund Class B

HGHBX2.15%

Eaton Vance Worldwide Health Sciences Fund Class C

ECHSX2.19%

Eaton Vance Worldwide Health Sciences Fund Class B

EMHSX2.20%

AllianzGI Health Sciences Fund Class C

RCGHX2.21%

Saratoga Health & Biotechnology Fund Class A

SHPAX2.22%

Eventide Healthcare & Life Sciences Fund Class C

ETCHX2.33%

Rydex Biotechnology Fund Class C

RYCFX2.33%

Rydex Health Care Fund Class C

RYHCX2.34%

Saratoga Health & Biotechnology Fund Class C

SHPCX2.81%

When you purchase shares of a fund, it’s important to do research on the fund. You should look at the fund’s underlying components, historical returns, loads and charges, and investment strategy of the fund. You should also consider how the fund will fit into your existing investment portfolio.

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