Though the sector typically sells 10% to 25% above historical valuations, Yoon believes the continuing debate about health care has created unusual discount as investors remain cautious. With shares trading 5% to 15% below historical values, he sees opportunity.

"I believe if ObamaCare goes into effect," he says, "it will lead to more efficient health care, forging more innovative business models." He likens the law to disruptive legislation, with companies that fight the change likely to be left behind. Most vulnerable, he thinks, are companies with high-cost, less financially flexible business models.

Industry leaders made up Yoon's top three holdings as of the end of January: Amgen (bio-tech), Covidien (health-care products) and UnitedHealth Group (insurance). Ultimately, Yoon believes most doubts about the sector are already priced into the market and is optimistic about the next six to 12 months, expecting continuation of the status quo or something better.

Utilities
Electric, gas and water utilities, especially regulated companies, have always been viewed as solid defensive plays, more akin to bond proxies than equities. And the prolonged bond yield drought has helped these shares rally. One- and three-year returns are up 14.28% and 15.21%, respectively. While outperforming the broad market by 62 basis points, the sector's five-year annualized return is a less impressive 1.61%.

But to long-term money manager Mario Gabelli, there is long-term value in owning utilities. His Utilities Fund, with $2.7 billion in assets, has delivered annualized total returns of 7.77% over the past 10 years through March 1, outperforming the S&P 500 by 3.77% a year.

"Demand for these shares are being driven," Gabelli explains, "by the sector's relatively high yield that's twice that of 10-year Treasurys, dividend tax rates of just 15%, and industry consolidation."

Gabelli Utilities Fund manager Tim Winter adds that regulated electric utilities-to him the sector's sweet spot-are benefiting from rate increases supporting the current rise in capital spending. He says that "the demand for improved pollution controls, search for renewable energy and need for enhanced transmission from more diverse energy sources have been fueling rate increases that target returns on equity of 10% to 11%."

With dividend payouts of more than 60% of earnings, recoverable investment costs and inelastic demand, Tim O'Brien, who manages Wells Fargo Advantage Utility & Telecom Fund, with $375 million in assets, also believes that regulated electric utilities are especially attractive investments. But he sees risk. While dividend growth should continue, some valuations are getting pricy, Bush-era tax cuts may soon expire, and a rise in interest rates would hit shares.

Technology4
The time frame one is considering can significantly affect a sector's perceived long-term value. Technology shares offer no better example of this. It's returns were arguably the most impressive of all sectors, rising annually by a rate of 8.34%, 29.72% and 6.38% over the past one, three and five years, respectively.

There's no underplaying the fundamentals currently driving technology shares today. Apple is now the world's largest company. IBM has regained its former luster as the world's dominant IT services company. And with a dividend that tops those of 10-year Treasury yields, Microsoft is arguably a much better investment than the government.