As the debate over the nation’s new health insurance system continues in Washington, health care stocks have been some of the best performers in the Standard & Poor’s 500 index. So far this year, the health care sector has climbed 29 percent compared with the 20 percent rise of the broader market.
The health care overhaul aims to provide insurance coverage for millions of people. Reducing the number of uninsured is expected to benefit a range of companies, including drug companies, insurance providers and hospitals, in the years ahead.
But which company should you invest in?
It might be best to stick with the sector. Investors who prefer to put their money in mutual funds have a range of health care sector funds to choose from. A general rule of thumb is that a sector fund should only be a small portion of your overall portfolio, say 5 percent.