Ima Winner/Ima Loser Health Care Funds

The past two topsy-turvy years have proven that some health care funds are fitter than others. We've found a real health nut for you, along with a fund that looks a little green around the gills.

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Health care funds were a port in the storm last year, as burned tech investors plowed their money into an area whose earnings growth tends to be a bit more stable. The average health fund rang up a 55% gain in 2000, compared with a 9% drop for the S&P 500. But the average health fund is down 12% over the past 12 months, according to Chicago fund-tracker Morningstar.

That said, it's easy to see why you'd be interested in a health care fund. As millions of Baby Boomers ease into retirement, they'll spark demand for health care, boosting profits for companies in the pharmaceutical, hospital and biotech rackets. As we've shown you in the past, adding a health care fund to a diversified portfolio can both boost returns and cut risk over time.

If you're looking for one, we suggest you check out the no-load (VGHCX Quote)Vanguard Health Care fund, our latest entrant into the Ima Winner Fund Club. On the flip side, we encourage you to think long and hard before you cast your lot with the no-load (FHLSX Quote)Invesco Health Sciences fund.

The Winner

The definition of a great fund is one that consistently delivers above-average gains with below-average volatility with a modest price tag. The Vanguard Health Care fund delivers on all fronts. ...