Should You Invest in the Fidelity MSCI Health Care Index ETF (FHLC)?

Core Insights - The Fidelity MSCI Health Care Index ETF (FHLC) is a passively managed ETF launched on October 21, 2013, providing broad exposure to the Healthcare - Broad segment of the equity market [1] - FHLC has amassed over $2.59 billion in assets, making it one of the larger ETFs in its sector [3] - The ETF has an annual operating expense ratio of 0.08%, making it one of the least expensive options available [4] Index Details - FHLC aims to match the performance of the MSCI USA IMI Health Care Index, which represents the U.S. healthcare sector [3] - The ETF is fully allocated to the healthcare sector, providing diversified exposure [5] Holdings and Performance - Eli Lilly + Co Common Stock (LLY) constitutes about 11% of total assets, with the top 10 holdings accounting for approximately 48.94% of total assets [6] - Year-to-date, FHLC has gained about 7.7%, with a 12-month increase of approximately 0.75% as of November 4, 2025 [7] - The ETF has a beta of 0.67 and a standard deviation of 13.55% over the trailing three-year period, indicating medium risk [7] Alternatives - FHLC carries a Zacks ETF Rank of 3 (Hold), suggesting it is a sufficient option for investors seeking exposure to healthcare ETFs [8] - Other alternatives include the Vanguard Health Care ETF (VHT) and the Health Care Select Sector SPDR ETF (XLV), with VHT having $15.91 billion in assets and XLV having $36.52 billion [9]