Top Performing Healthcare/Biotech Funds For Q1 2015

For Q1 2015, Healthcare mutual funds continued the momentum they experienced in 2014. Healthcare funds soared over 30% to emerge as the best gainers among the sector equity funds in 2014. Mergers and acquisitions (M&As) and licensing agreements dominated in 2014, and the trend has been repeated in first quarter 2015 as well. Though new rules by the Treasury Department muted the tax inversion deals, it has not deterred the M&A activities.

So far, biotech companies with new therapies or interesting pipeline candidates have been attracting a lot of attention. The M&A frenzy shows no signs of slowing down, and bellwethers are actively busy in licensing activity to bolster their beleaguered pipelines. Thus, the sector promises to be profitable going forward, just as it has been last year.

Sector Performance

Looking at the broader markets, markets had a choppy first quarter 2015. The Dow snapped a three-quarter winning streak. However, the S&P 500 gained 0.4% and extended its quarterly winning streak to nine quarters. The Nasdaq advanced 3.5%, also extending its winning streak to nine quarters, its longest stretch of quarterly gains ever.

Nonetheless, gains in the biotech sector have been far greater. The NASDAQ Biotechnology index jumped 13.2% in the first quarter. As of Apr 15, it boasts year-to-date gains of 18.7%. The Health Care SPDR ETF (XLV) notched up gains of 6% in Q1 and as of Apr 15, it is the top gainer among the S&P industry groups with gains of 8.2%.

Looking at the mutual funds, the healthcare mutual funds were once again the best gainers among the sector equity funds. Its robust 10.7% return in Q1 was far above the second-placed Real Estate sector’s return of about 4.4%.

Sector Equity Funds Return (in %)
1Q15 1 Year
Health 10.71 32.38
Real Estate 4.37 22.52
Global Real Estate 4.06 12.87
Consumer Cyclical 3.88 13.01
Technology 2.99 13.1
Consumer Defensive 2.55 12.5
Communications 2.11 4
Industrials 1.77 8.06
Financial 0.15 3.39
Energy Limited Partnership -1.29 2.68
Equity Energy -1.35 -19.95
Natural Resources -1.35 -15.63
Utilities -2.26 7.08
Equity Precious Metals -3.88 -22.91
1 2 3
View single page >> |

Disclosure: contains statements and statistics that have been obtained from ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.