Fidelity MSCI Health Care Index ETF

FHLC

Market cap $2.89B

Healthcare investing offers defensive characteristics during market turbulence, yet regulatory uncertainty and political risk can trigger sudden selloffs.

The Fidelity MSCI Health Care Index ETF (FHLC) was launched on October 21, 2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.

Fidelity MSCI Health Care Index ETF offers long-term growth potential, leveraging demographic tailwinds and biotech innovation, but requires patience through cycles. FHLC's market-cap weighting enables dynamic exposure, reducing biotech risk in downturns and capturing upside in rallies, outperforming pure biotech or pharma over a decade. Currently, FHLC is highly concentrated in pharma, with Eli Lilly and Company at ~13%, which enhances near-term resilience but increases drawdown risk if heavyweights underperform.

The healthcare sector has experienced one of its most significant de-ratings in 35 years, with valuations now at a 30% discount to the broader market. Healthcare trades at historical valuation discounts across multiple metrics.

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), a passively managed exchange traded fund launched on October 21, 2013.

Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Fidelity MSCI Health Care Index ETF (FHLC) is a passively managed exchange traded fund launched on October 21, 2013.

Midyear can be an ideal opportunity for investors to re-evaluate their portfolios and consider rebalancing to align with their ideal asset allocation. As the midpoint of 2025 passes, the U.S. stock market has delivered a mixed bag of performance across sectors, driven largely by continued enthusiasm for artificial intelligence (AI) and fluctuating economic conditions.

FHLC is a solid healthcare ETF, but VHT offers slightly better performance, liquidity, and diversification for a similar expense ratio. FHLC's high concentration in top holdings and lower trading volume raise concerns compared to VHT's broader portfolio and superior liquidity. Healthcare sector tailwinds like innovation, aging demographics, and biotech growth benefit all major ETFs, but VHT stands out on key metrics.

The Fidelity MSCI Health Care Index ETF (FHLC) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.

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