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player ready...Q. I have a fairly large, diversified investment portfolio and would like to branch out into a few sector funds. I’m considering Vanguard Health Care Fund. What’s your opinion of it?
F.B., via the Internet
A. If this fund’s whopping $25,000 minimum initial investment doesn’t scare you away, it has a lot to offer.
Health care represents nearly 15 percent of the nation’s gross domestic product, which makes it relatively easy for a fund specializing in it to become diversified. While the biggest chunk of this portfolio is in stock of the drug companies, it reduces volatility by also holding biotechnology, medical technology, hospitals and health maintenance organizations.
The $14 billion Vanguard Health Care Fund (VGHCX) declined 9 percent over the past 12 months, which places it in the top 2 percent of health-care funds. Its three-year annualized return of 8 percent puts it in the top 10 percent of its peers.
“Vanguard Health Care is a diversified fund in a sector fund’s clothing,” said Daniel Wiener, editor of The Independent Adviser for Vanguard Investors (www.adviseronline.com), 7811 Montrose Rd., Potomac, Md. 20854.
Depending on an individual’s risk profile, this fund could comprise from 10 percent to 15 percent of a personal portfolio and could be held for many years, Wiener said.
Q. I’m in the process of selecting a financial planner. Are there organizations where I can check up on a planner’s record and certifications?
S.H., Chicago
A. There isn’t a one-stop shopping site to investigate a planner, but some phone calls or Web site checks can get the job done. There are different kinds of planners with varied certifications and professional capabilities.
The Certified Financial Planner Board of Standards at 888-CFP-MARK (www.cfp-Board.org), a non-profit regulatory organization, can confirm whether a certified financial planner is currently certified and has ever been disciplined by the board. It also accepts complaints.
The North American Securities Administrators Association at 888-84-NASAA (www.NASAA.org), an international body representing 65 securities administrators, can direct you to state securities commissioners who monitor records of planners licensed to sell securities.
The National Association of Securities Dealers at 800-289-9999 (www.nasd.com) and the Securities and Exchange Commission at 800-732-0330 (www.sec.gov) each supply disciplinary and work histories of brokers and information on filing complaints.
Get information on planners selling insurance from the National Association of Insurance Commissioners at 816-842-3600 (www.NAIC.org). For a fee, Mortgage Asset Research Institute at 800-822-0416 (www.mari-inc.com) provides information on the mortgage and financial-services industries.
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Andrew Leckey answers questions Sunday in Business and Tuesday in Your Money. Address inquiries to Andrew Leckey, #184, 369-B Third St., San Rafael, CA 94901-3581 or by e-mail at [email protected]. Andrew Leckey