Health care was the top-performing fund category for the first quarter of 2015, jumping 11.0%, more than double the gain of the second-ranked category—consumer discretionary—which was up 4.9%.
All five of last quarter’s top-performing sector funds are in the health care sector, paced by Fidelity Select Biotech (FBIOX) and Rydex Biotechnology (RYOIX). These two funds have similar portfolios, sharing seven of their 10 top holdings. The weightings differ, however: Fidelity Select Biotech allocates more to Gilead Sciences (GILD) than Rydex Biotechnology does, for instance. Since biotechnology stock prices are significantly influenced by company-specific news, how a particular fund weights its portfolio directly impacts its performance.