like the sector longterm and one of the better healthcare funds.

Schwab Health Care

Probably the best health care fund out there aside from Vanguard's, which has a huge minimum.

health care not going anywhere

According to the Department of Health and Human Services, the number of Americans over 65 years old will more than double by 2030 from 2000. Because the U.S. population is aging and this is the first year for the expanded third-party insurance coverage on drugs and supplies, we like the B-minus-rated Schwab Health Care Focus Fund (SWHFX).

This open-end fund, like the entire tech sector of the market, has fallen behind the rest of the market in recent months. But it is one of the small handful to maintain a buy rating (B-minus or above), down from an A as recently as September 2006. It is 55.6% invested in pharmaceuticals and biotech and 42.6% in health care equipment. Exposure to biotech, pharmaceuticals and health care provides good diversification to the other 2007 selections.