Healthcare ETF: FHLC's Performance and Holdings

The Fidelity MSCI Health Care Index ETF (FHLC) is a passively managed ETF that offers broad exposure to the Healthcare - Broad segment of the equity market. Launched on 10/21/2013, it has amassed assets over $2.44 billion and has an expense ratio of 0.08%, making it the least expensive product in the space. The ETF has a 12-month trailing dividend yield of 1.59% and has heaviest allocation in the Healthcare sector, with Eli Lilly + Co Common Stock (LLY) accounting for about 11.43% of total assets. The ETF has lost about -1.36% so far this year and is down about -5.30% in the last one year, with a beta of 0.66 and standard deviation of 14.26% for the trailing three-year period.

The Fidelity MSCI Health Care Index ETF (FHLC) is a passively managed exchange-traded fund (ETF) that provides broad exposure to the Healthcare - Broad segment of the U.S. equity market. Launched on October 21, 2013, the ETF has amassed assets over $2.44 billion, making it one of the larger ETFs in the space. With an expense ratio of 0.08%, it is the least expensive product in the healthcare sector ETF category [4].

The ETF tracks the MSCI USA IMI Health Care 25/50 Index, which represents the performance of the healthcare sector in the U.S. equity market. As of the latest data, the ETF has a 12-month trailing dividend yield of 1.59% [4]. The ETF's largest holdings include Eli Lilly + Co Common Stock (LLY), which accounts for about 11.43% of total assets, followed by Johnson & Johnson Common Stock (JNJ) and AbbVie Inc Common Stock (ABBV) [4].

FHLC has experienced a challenging period recently, with a year-to-date loss of about -1.36% and a loss of -5.30% over the last year as of July 1, 2025. The ETF's beta of 0.66 and a standard deviation of 14.26% for the trailing three-year period indicate moderate risk [4].

Investors seeking exposure to the healthcare sector might consider alternative ETFs such as the Vanguard Health Care ETF (VHT) and the Health Care Select Sector SPDR ETF (XLV). VHT, with $15.31 billion in assets, has an expense ratio of 0.09%, while XLV, with $34.20 billion in assets, charges 0.08% [4].

In summary, the Fidelity MSCI Health Care Index ETF offers a low-cost, broad exposure to the healthcare sector. While it has experienced recent performance challenges, its low expense ratio and moderate risk profile make it an attractive option for investors seeking exposure to this sector.

References:
[1] https://finviz.com/news/92925/should-you-invest-in-the-fidelity-msci-health-care-index-etf-fhlc
[2] https://www.stocktitan.net/news/JPM/j-p-morgan-asset-management-hits-market-with-largest-active-etf-9v8bf40n639q.html
[3] https://finance.yahoo.com/quote/FNCL/
[4] https://seekingalpha.com/news/4462119-vanguard-health-care-etf-declares-quarterly-distribution-of-09619