Vanguard Health Care Fund

[Craig]

We're looking forward to being able to invest in this fund, if and when it opens once again to new investors. Anyone with a crystal ball as to when that might happen?

Other, comparable choices for those who would like to dedicate some funds to this sector?

Thanks.

 

[cute fuzzy bunny]

A terrific fund, which I owned for most of the last 7 years.

Terrific unless nationalized or partially nationalized health care goes through, a modest health care reforms bill gets passed, a drug cost reform bill goes through, or something similar. You get the idea. Fund would probably suffer a fairly decent ding on that occurrence, and might not be as good of a returner after that.

Not a bad hedge against rising health care costs though. If health care costs are 10% of your budget, might be a good idea to own 10% of this fund until something unpleasant as described above starts to materialize.

 

[Spanky]

I have held this fund since 2/27/92. It's my best performing fund. I have no idea when it might be reopenned again. You might consider the VIPER version and the one from Fidelity.

 

[cute fuzzy bunny]

I think the viper version is based on the health care index, which is a different ball o' wax from the regular health care fund.

I could be wrong. It's been known to happen...

 

[Spanky]

CFB,

You are right - the Viper fund is not the same as the Health Care fund.
The Fidelity Select fund (FSPHX) is worth considering even though the return is not as good as that of Vanguard.

Spanky

 

[TromboneAl]

I've had it since 11/04. What was the cause of the drop recently?

 

[cute fuzzy bunny]

I sold. Thats what made it go down.

Sorry...

 

[JPatrick]

I've had it since 11/04.  What was the cause of the drop recently?

They just woofed out a distribution a few days ago.

 

[Craig]

Spanky, thanks for the tip on the Fidelity fund.

We're long time Vanguard clients ... do they at least offer a service where they will contact you when funds reopen, is this a newsletter article feature, or

Appreciate the feedback.

 

[wabmester]

I have held this fund since 2/27/92.

Just out of curiosity, how did you determine this? Vanguard only lets me go back to 1997 or so. VGHCX is one of my longest-term holdings. Since late 1980's, I think.

 

[Spanky]

Spanky, thanks for the tip on the Fidelity fund.

We're long time Vanguard clients ... do they at least offer a service where they will contact you when funds reopen, is this a newsletter article feature, or

Appreciate the feedback.

They may send you an update when the fund is reopened. Another way is to monitor it via their web site.

 

[Spanky]

Just out of curiosity, how did you determine this? Vanguard only lets me go back to 1997 or so. VGHCX is one of my longest-term holdings. Since late 1980's, I think.

The fund was established on 05/23/1984. I keep track of my transactions in a spreadsheet in addition to the statements in paper.

SPanky

 

[rs0460a]

High and low prices since inception
View the investment high and low prices since its inception.

Current results

Health Care Fund Inv 
Fund Inception Date 5/23/1984 
   
High - High Date                 Low - Low Date
$145.73 03/22/2006        $9.21 07/24/1984

_________________________________________________

Just some stats from the Vanguard site on VGHCX...  :

 

[Craig]

Health Care Fund (VGHCX) historical performance, from Vanguard's site:


1 Year3 Year5 Year10 YearSince Inception
05/23/1984
18.83%19.10%9.22%16.74%19.51%


Even if it were open, I assume your point is an investor is buying at the high.  However, it is interesting to compare to the Fidelity fund performance ... and to note that nearly 20% lifetime return.  No guarantee of future performance, but the demographics should help ... depending upon government interference.

 

[unclemick]

Like that dam - pssst Wellesley never owned enough VG Health long enough.

Sigh!

I just hate hindsight!

 

[TromboneAl]

Yes, I had to buy it based on demographics.

So, no one has an explanation as to why it went down by 4% in a few days?

 

[work4beer]

So, no one has an explanation as to why it went down by 4% in a few days?

VGHCX distributed capital gains on 3/24. More shares, lower price. Account value is about the same.

WW4B

 

[TromboneAl]

OK, IC, thanks.