Betting Responsibly on Healthcare
These funds offer thoughtful investments in healthcare, not tactical plays.
This article was originally published in the November 2016 issue of Morningstar FundInvestor. After its release, the results of the presidential election prompted a brief surge in healthcare stocks. However, while the typical health-sector fund gained 3.7% in November, it was still down 10.4% for the year through Dec. 11, even as all other domestic sector and diversified stock fund categories remained well in the black. Download a complimentary copy of FundInvestor here.
Healthcare funds were down 13.4% for the year through Oct. 31, following a big rally in prior years. Morningstar's stock analysts see opportunities here: They expect pricing power for drug and biotech companies to remain strong, research and development to remain productive, and mergers and acquisitions to continue at a steady pace.
Laura Lallos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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