3 Healthcare Mutual Funds To Buy For 2019

Healthcare has been the best performing sector among the broader S&P 500 index’s sectors with stocks rallying steadily this year. The Health Care Select Sector SPDR (XLV) has gained 11.3% on a year-to-date basis, impressively ahead of other major sectors such as consumer discretionary, technology and utilities.

Healthcare stocks have gained despite the Trump administration’s attempts to make certain fundamental changes in healthcare policies, which were promptly halted in Congress. With a divided Congress post-midterm elections in November, healthcare stocks are set for greater highs.

Therefore, it would be ideal to invest in a couple of mutual funds that could benefit from the healthcare stocks’ rally.

U.S. Healthcare Sector Looks Promising

National spending on healthcare rose for a second year in 2017, according to a U.S. Centers for Medicare and Medicaid Services (CMS) report on Dec 6. Healthcare funding grew 3.9% to $3.5 trillion last year, propelled by higher medical products and services costs.

Healthcare spending by major fund sources such as private health insurance, Medicare and Medicaid also witnessed an upward movement in 2017, per the CMS report. Continuing research and foreign investments in U.S. biotechnology, addition of new medical equipment, rising demand for drugs to treat rare diseases and an aging population helped boost healthcare stocks.

Factors to Boost U.S. Healthcare in 2019

A majority of healthcare companies in the United States benefit from consistent cash inflow and notable profit margins. Greater technological investment and innovation to increase efficiency and lessen wastages are likely to bring down overall treatment costs and medical product prices.

The implementation of artificial intelligence, machine learning, big data along with other technological advancements in healthcare could remarkably increase the sector’s proficiency, thus boosting it.

In addition, new tax reforms have provided more healthcare companies with cash. This could help these companies invest in healthcare start-ups or participate in mergers and acquisitions to diversify their business. Overall, all these operations are bound to get healthcare stocks soaring ahead.

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This Zacks sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual ...

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