Even with the uncertainty of the Affordable Care Act’s (ACA) future, the Healthcare sector has been one of the top performing segments in 2017. Currently, there are two plans in motion with Republicans attempting one more time to repeal the act, and a second plan more geared at a bipartisan solution. Committee meetings are expected to start next month in attempts to find a middle ground between both political parties to fix several parts of the ACA. The hearings are supported by both Republican chairman of the Health, Education, Labor, and Pensions Committee member Senator Lamar Alexander of Tennessee, and the committee’s top Democrat Senator Patty Murray of Washington State. These two Senators have cooperated with each other on a few other pieces of legislation.

A bipartisan solution seems to marry the best ideas from each party and would most likely help both the consumer and businesses alike.  

The Picks

Fidelity Select Medical Equipment & Systems (FSMEX – Free Report) fund’s objective is to seek capital appreciation. Normally the fund invests at least 80% of assets in common stocks of companies principally engaged in research, development, manufacture, distribution, supply, or sale of medical equipment and devices and related technologies. The fund offers dividends and capital gains twice a year in April and December.

Cost Specifics: The minimal investment is $2,500, it has a 0.55% management fee, and the total expense ratio is 0.76.  

Performance and Management: YTD return +24.3%, 1 year +12.9%, 5 year +22.4%, 10 year +13.7%.FSMEX has been managed by Edward Yoon since 2007 who has been a research analyst and portfolio manager at Fidelity since 2006.Mr. Yoon has a BA in business economics from Brown University.  

Top Holdings: As of the most recent filings, the top five positions were held in Medtronic PLC, Boston Scientific, Becton, Dickerson and Co., Intuitive Surgical, and Danaher Corp.