Fidelity MSCI Health Care Index ETF

FHLC

Market cap $2.96B

The Fidelity MSCI Health Care Index ETF (NYSEARCA:FHLC) is down about 5% year to date while the S&P 500 is up 7%.

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

Investors are questioning the staying power of medical technology (medtech) stocks, which have fallen from grace since the COVID-19 pandemic. The starting point is to distinguish between medtech and other healthcare industries.

Recent White House and FDA actions fast-track psychedelic depression drug approvals, granting priority review vouchers and accelerating rescheduling for eligible therapies. Compass Pathways leads with a CNPV for COMP360 in treatment-resistant depression, positive Phase 3 data, and a sub-$1bn market cap suggesting potential upside.

With Q1 earnings season well underway, it was Johnson & Johnson (JNJ) giving investors a peek at how the broader healthcare sector might perform. The healthcare giant beat expectations on Tuesday in revenue ($24.1 billion actual versus $23.6 expected) and earnings per share ($2.70 actual versus $2.66 expected).

After a 50%+ run from lows last April through highs in mid-January, the Biotech group has been trending sideways over the last few months. Biotech hasn't garnered much attention lately, with all the coverage of the Iran War and the AI Doom trade that's been taking down software stocks even as AI infrastructure stocks continue to surge.

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

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.