FHLC: An Average Healthcare ETF

Adrien Monnier
73 Followers

Summary

  • 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.
  • Despite comparable industry returns, FHLC’s underperformance to its benchmark and lack of unique advantages make VHT the clear recommendation.

Medical clinic with a waiting lineup of people on a blue background

J Studios/DigitalVision via Getty Images

The Fidelity MSCI Health Care Index ETF (NYSEARCA:FHLC) is a passive ETF investing in the healthcare industry. Its performance is in line with industry peers, but the small details you will find when looking

This article was written by

73 Followers
I am a dynamic finance professional with a Master’s in Banking & Finance from Université Paris 1 Panthéon-Sorbonne. My investing background mix corporate finance, M&A, and investment analysis, with a focus on real estate, renewable energy, and equity markets. I specialize in financial modelling, valuation, and qualitative analysis, demonstrated with hands-on roles in private equity, asset management and Real Estate. On Seeking Alpha, I aim to write about companies I find interesting sharing my insights and analysis with a global audience, and to debate my ideas in a will of continuous improvement. Motivated by empowering informed decisions, I’m excited to connect with readers and grow as a thought leader in finance.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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About FHLC ETF

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