(FHLC) Fidelity MSCI Health Care - Ratings and Ratios

The Fidelity® MSCI Health Care Index ETF (NYSE ARCA: FHLC) is designed to track the performance of the U.S. healthcare sector through its underlying index, the MSCI USA IMI Health Care 25/50 Index. This index captures a broad range of healthcare companies, from pharmaceuticals to biotechnology and medical devices. The fund typically invests at least 80% of its assets in securities from this index, though it may not hold every single one. This approach allows for some flexibility while still maintaining close alignment with the indexs performance.

As a non-diversified fund, FHLC can take larger positions in its top holdings, which are often the biggest names in U.S. healthcare. This concentration can lead to higher volatility but also allows for more direct exposure to the sectors leaders. The funds expense ratio and tracking error are designed to be competitive, making it a cost-effective way to gain exposure to the healthcare sector. With an AUM of over $2.79 billion, FHLC is a substantial player in the ETF space, offering liquidity and scale for investors.

For investors and fund managers, FHLC provides a straightforward way to tap into the growth potential of the healthcare industry, which is driven by an aging population, innovation in medical technology, and increasing healthcare spending. The ETFs structure allows for diversification across the healthcare value chain, reducing reliance on any single company or subsector. This makes it a useful tool for portfolio construction, especially for those looking to balance sector-specific exposure with broader market stability.