With overhaul of the American health care system engineered by President Obama and the Democratic members of Congress still in its infancy, parsing through the newly inked legislation to identify investment winners and losers has become a popular sport even if a bit hypothetical at this early stage. Forbes took the search for leaders and laggards to health care experts for investing ideas.  The big takeaways are to stay diversified in the sector, and that you can tap into significant health care exposure where you might not expect to find it in some "diversified" mutual funds.  "Health care is a solid place to invest," says S&P equity analyst Todd Rosenbluth.  The health care sector represents 12.6% of the S&P 500 by market capitalization, but many portfolio managers and analysts like Rosenbluth recommend overweighting it in your stock portfolio right now.  "While uncertainty is diminishing, it is not yet gone," says ConvergEx Group chief market strategist Nicholas Colas. He argues for a diversified approach to investing in the health care sector, spreading assets across biotech, pharmaceuticals, medical devices, health insurers and health care providers, to name just a few.  Tapping into the sector is easy, even without buying individual stocks. Many health care-heavy ETFs and mutual funds are diversified while others focus on specific subsectors, like medical equipment, long-term care or drugs.  Doug Roberts, chief investment strategist at Channel Capital Research, says that iShares Dow Jones U.S. Healthcare ( IYH - news - people ) is the best bet since "you're never sure of winners and losers" and it may be several years before those labels can be firmly placed on any one subsector. He cautions that biotech may be one of the losers because innovation is expensive and industry leaders are still wondering who will be footing the bill for innovative new drugs.  Click here for 10 Health Care Funds & ETFs.  Roberts says the IYH is "quite cheap relative to the market," with many components trading for less than 10 times expected 2011 earnings. "Volatility was leaving this sector" long before the House voted last weekend, says Roberts, adding that it's since "gone from laggard to leader in terms of stock momentum."
Get diversified exposure to health care through ETFs and several mutual funds that don't even have ''health care'' in their names.