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Should You Invest in the Fidelity MSCI Health Care Index ETF (FHLC)?
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If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Fidelity MSCI Health Care Index ETF (FHLC - Free Report) , a passively managed exchange traded fund launched on 10/21/2013.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $2.93 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. FHLC seeks to match the performance of the MSCI USA IMI Health Care Index before fees and expenses.
The MSCI USA IMI Health Care Index represents the performance of the health care sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Unitedhealth Group Inc Common Stock Usd.01 (UNH - Free Report) accounts for about 8.03% of total assets, followed by Johnson + Johnson Common Stock Usd1.0 (JNJ - Free Report) and Abbvie Inc Common Stock Usd.01 (ABBV - Free Report) .
The top 10 holdings account for about 46.82% of total assets under management.
Performance and Risk
The ETF has lost about -5.34% so far this year and is down about -3.12% in the last one year (as of 05/31/2023). In that past 52-week period, it has traded between $56.56 and $66.02.
The ETF has a beta of 0.73 and standard deviation of 16.44% for the trailing three-year period, making it a medium risk choice in the space. With about 437 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Health Care Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FHLC is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $16.43 billion in assets, Health Care Select Sector SPDR ETF has $38.91 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Fidelity MSCI Health Care Index ETF (FHLC)?
If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Fidelity MSCI Health Care Index ETF (FHLC - Free Report) , a passively managed exchange traded fund launched on 10/21/2013.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $2.93 billion, making it one of the larger ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. FHLC seeks to match the performance of the MSCI USA IMI Health Care Index before fees and expenses.
The MSCI USA IMI Health Care Index represents the performance of the health care sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Unitedhealth Group Inc Common Stock Usd.01 (UNH - Free Report) accounts for about 8.03% of total assets, followed by Johnson + Johnson Common Stock Usd1.0 (JNJ - Free Report) and Abbvie Inc Common Stock Usd.01 (ABBV - Free Report) .
The top 10 holdings account for about 46.82% of total assets under management.
Performance and Risk
The ETF has lost about -5.34% so far this year and is down about -3.12% in the last one year (as of 05/31/2023). In that past 52-week period, it has traded between $56.56 and $66.02.
The ETF has a beta of 0.73 and standard deviation of 16.44% for the trailing three-year period, making it a medium risk choice in the space. With about 437 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Health Care Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FHLC is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $16.43 billion in assets, Health Care Select Sector SPDR ETF has $38.91 billion. VHT has an expense ratio of 0.10% and XLV charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.