ipopba / iStock via Getty Images Quick Read FHLC charges just 0.084% in fees but carries 13% concentration in Eli Lilly. The fund gained 17.9% over one year but returned only 154% over ten years versus the S&P 500’s 235%. Enhanced ACA premium tax credits face 87.5% probability of expiring by January 31 2026. Have You read The New Report Shaking Up Retirement Plans? Americans are answering three questions and many are realizing they can retire earlier than expected. Healthcare investing offers ...

Core Insights - Healthcare investing is characterized by defensive traits during market volatility, but regulatory and political risks can lead to abrupt selloffs [1] - Fidelity MSCI Health Care Index ETF (FHLC) offers a low-cost entry point for investors seeking exposure to the healthcare sector without selecting individual stocks [1] Fund Overview - FHLC tracks the MSCI USA IMI Health Care Index, providing exposure to U.S. healthcare companies across various segments including pharmaceuticals, biotechnology, medical devices, and health insurance [2] - The fund has an expense ratio of 0.084% and includes over 80 holdings, focusing on capital appreciation and modest dividend income [2] Concentration Risk - Eli Lilly constitutes over 13% of FHLC's portfolio, linking its performance closely to GLP-1 obesity drugs, which have seen a 46% increase in stock price over the past year [3] - The top five holdings also include UnitedHealth, Johnson & Johnson, Merck, and AbbVie [3] Performance Analysis - FHLC has shown strong short-term performance, gaining 5.3% in the last month and 17.9% over the past year, outperforming the S&P 500 [4] - However, over five years, FHLC returned 42.6%, significantly lagging behind the S&P 500's 84.5% return, with a widening gap over ten years (154% vs. 235%) [4] Sector Challenges - The underperformance of FHLC reflects broader challenges in the healthcare sector, including drug pricing pressures and slower innovation cycles outside oncology and rare diseases [5] - Recent momentum may indicate potential sector rotation, but investing after outperformance carries inherent risks [5] Policy and Income Considerations - Investors face political and regulatory uncertainties, with an 87.5% probability that enhanced ACA premium tax credits will expire by January 2026, impacting health insurers like UnitedHealth [7] - FHLC's yield of 1.33% is considered modest compared to other market alternatives, with dividend growth of approximately 4.6% annually over five years, barely keeping pace with inflation [8] Suitability for Investors - Growth-focused investors seeking maximum capital appreciation may find FHLC unsuitable due to its long-term underperformance [9] - Retirees prioritizing income generation may also find better yield opportunities in other sectors without sacrificing stability [9] Alternative Options - Vanguard Health Care ETF (VHT) is presented as an alternative, with a slightly higher expense ratio of 0.09%, larger asset base of $20.4 billion, and a higher dividend yield of 1.38% [11] - VHT's longer track record since 2004 and superior liquidity may provide additional confidence for long-term investors [11] Tactical Allocation - FHLC may serve as a tactical allocation for investors seeking low-cost exposure to the healthcare sector, but concentration risk and historical underperformance necessitate careful position sizing [12]

Company - Nvidia is recruiting executives from Google Cloud to strengthen its position in the market [8] - Chevron could see an annual revenue increase of up to $700 million due to its operations in Venezuela [8] - Stellantis has canceled its sales plan for plug-in hybrid vehicles in the U.S. due to weak demand [8] - Glencore and Rio Tinto are in negotiations to potentially create the world's largest mining company [8] - xAI plans to invest $20 billion in building a data center in Mississippi [8] - Hyundai will fully deploy humanoid robots starting in 2028 [8] - Paramount reiterated its all-cash offer of $30 per share for WBD [8] - General Motors will account for $7.1 billion in expenses in the fourth quarter [8] - Johnson & Johnson is lowering drug prices in the U.S. in exchange for tariff reductions, but experts say savings for insured individuals will be limited [8] Industry - The U.S. added 584,000 jobs in 2025, marking the lowest growth rate in a non-recession period since 2003 [8] - U.S. household wealth has reached a record high, benefiting from the rise in the stock market [8] - The EU is expected to sign a historic trade agreement with South America despite opposition from France [8] - The WTI crude oil price has risen for the third consecutive week [9] - The U.S. debt market shows mixed results, with a flattening yield curve and mixed non-farm payroll data [9] - The dollar is rising alongside U.S. Treasury yields as traders reduce bets on Federal Reserve rate cuts [9]

Key Points AbbVie and Johnson & Johnson have resilient, noncyclical businesses. They are also outstanding dividend payers. 10 stocks we like better than AbbVie › The technology sector is an excellent place to find high-growth stocks with promising prospects. However, it is a cyclical sector that doesn't perform as well when the economy tanks. It's critical for investors to diversify their tech holdings, perhaps by putting their money into more defensive industries that behave differently during dow ...

Core Insights - Johnson & Johnson (JNJ) has signed a significant agreement with the Trump administration to lower drug prices in the U.S. [1] - JNJ is part of a broader trend among large-cap pharmaceutical companies committing to similar agreements to reduce drug prices [2] Agreement Details - Under the agreement, JNJ will reduce prescription drug prices to align with those in comparable developed countries, supporting the Most Favored Nation (MFN) pricing proposal [3] - JNJ will benefit from a limited-period exemption from import tariffs on pharmaceutical ingredients, contingent upon expanding its domestic manufacturing operations [4] Financial and Operational Impact - JNJ's shares have increased by 30.6% over the past six months, outperforming the industry growth of 20.4% [5] - The company is advancing a $55 billion plan to enhance U.S. manufacturing, research, and technology capabilities by early 2029 [6][7] - JNJ is constructing new facilities in Pennsylvania and North Carolina, including a $2 billion biologics plant expected to create approximately 5,000 jobs [8] Industry Trends - Other large-cap pharmaceutical companies are also investing significantly in U.S.-based manufacturing and R&D, with AstraZeneca committing $50 billion by 2030 and AbbVie planning over $10 billion by 2035 [9][10][13] - Lilly has announced a $27 billion investment to develop new manufacturing sites, enhancing production capacity for its marketed drugs [14]

Group 1 - Johnson & Johnson (JNJ) experienced a 0.5% decline in early trading on Friday [1][2] - The company agreed to lower prices on certain drugs and join the TrumpRx.gov platform in exchange for tariff exemptions and a U.S. investment plan [1][2] - Experts believe that the savings for most insured patients will be limited [1][2]

Market Overview - US stock index futures are all up, with Dow futures rising by 0.04%, S&P 500 futures by 0.11%, and Nasdaq futures by 0.20% [1] - European indices also show positive movement, with Germany's DAX up 0.41%, UK's FTSE 100 up 0.52%, France's CAC 40 up 0.86%, and the Euro Stoxx 50 up 1.06% [2][3] - WTI crude oil has increased by 0.73%, priced at $58.18 per barrel, while Brent crude oil is also up by 0.73%, priced at $62.44 per barrel [3][4] Economic Events - The US is anticipating a significant day with the release of the December non-farm payroll report and a Supreme Court ruling on Trump's tariff policy, which could impact market volatility [5] - Goldman Sachs indicates that the upcoming non-farm data is unlikely to change the market's expectations for the Federal Reserve's policy unless there is a significant surprise, with a consensus estimate of 70,000 jobs added [5] Company News - Meta has signed three major nuclear energy agreements totaling 6.6 gigawatts to secure long-term zero-carbon power for its AI data centers, leading to significant pre-market stock increases for partners Oklo and Vistra [9] - Trump has directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to lower housing costs ahead of the midterm elections, positively impacting related stocks [7] - Intel's stock has surged over 70% since the US government began purchasing shares, following a meeting between Trump and Intel's CEO to discuss new processor developments [10] - General Motors is taking a $6 billion charge to reduce its electric vehicle investments, following a similar move by Ford, indicating a contraction in the electric vehicle market [12] - TSMC reported a 20% increase in Q4 revenue, reaching approximately $33.1 billion, exceeding market expectations and suggesting resilience in AI spending for 2026 [13]

有统计数显示，美国患者们目前为处方药所支付的整体费用远高于其他发达国家，往往接近其他国家销 售价格的三倍。特朗普政府一直在施压制药商们把美国国内药价降至海外所支付的水平。 "这份联合协议满足了特朗普总统向美国制药行业提出的要求，并为公司的制药产品提供关税豁免，"强 生周四在一份声明中表示。不过双方协议的具体条款未予以披露，包括下调后的药价细节或涵盖哪些药 品。 美国制药巨头强生公司(JNJ.US)当地时间周四表示，已经与美国总统唐纳德·特朗普政府达成协议，将为 美国民众们下调药品价格，以换取获得特朗普政府至关重要的关税豁免。 据了解，在与强生达成协议之前，特朗普政府于2025年12月与另外九家美国大型制药公司达成协议，要 求它们下调面向联邦政府医疗补助计划(Medicaid)以及现金自费消费者们的药品价格，旨在使美国药品 成本与其他富裕发达国家的销售水平接轨。 强生表示，将参与特朗普政府推出的TrumpRx.gov网站，使美国人能够以大幅折扣价格购买其所需要的 强生公司药品。该公司还将以与其他发达国家相当的价格向Medicaid提供关键药品获取渠道。 根据12月达成的一项重磅协议，所有九家美国制药商同意下调其 ...

强生表示，将参与特朗普政府推出的TrumpRx.gov网站，使美国人能够以大幅折扣价格购买其所需要的 强生公司药品。该公司还将以与其他发达国家相当的价格向Medicaid提供关键药品获取渠道。 （原标题：?强生(JNJ.US)加入美国药品降价联盟 换取特朗普关税豁免） 智通财经APP获悉，美国制药巨头强生公司(JNJ.US)当地时间周四表示，已经与美国总统唐纳德·特朗普 政府达成协议，将为美国民众们下调药品价格，以换取获得特朗普政府至关重要的关税豁免。 据了解，在与强生达成协议之前，特朗普政府于2025年12月与另外九家美国大型制药公司达成协议，要 求它们下调面向联邦政府医疗补助计划(Medicaid)以及现金自费消费者们的药品价格，旨在使美国药品 成本与其他富裕发达国家的销售水平接轨。 有统计数显示，美国患者们目前为处方药所支付的整体费用远高于其他发达国家，往往接近其他国家销 售价格的三倍。特朗普政府一直在施压制药商们把美国国内药价降至海外所支付的水平。 "这份联合协议满足了特朗普总统向美国制药行业提出的要求，并为公司的制药产品提供关税豁免，"强 生周四在一份声明中表示。不过双方协议的具体条款未予以披露，包 ...

Group 1 - The Trump administration has reached a deal with Johnson & Johnson to lower the prices of certain medications, aiming to enhance affordability for consumers [1] - The agreement is part of a broader initiative to address prescription drug costs, which have been a significant concern for many Americans [1] - Johnson & Johnson is expected to implement price reductions on specific drugs, although the exact medications and the extent of the price cuts have not been detailed [1] Group 2 - This deal reflects ongoing efforts by the government to negotiate better pricing with pharmaceutical companies, which may influence future pricing strategies across the industry [1] - The collaboration with Johnson & Johnson could set a precedent for similar agreements with other pharmaceutical companies, potentially reshaping the competitive landscape [1] - The administration's focus on drug pricing is likely to impact public perception and trust in pharmaceutical companies, as affordability becomes a key issue for consumers [1]