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]

Core Insights - UnitedHealth Group (UNH) reported disappointing first-quarter 2025 results, missing both earnings and revenue estimates, and lowered its full-year guidance due to rising medical costs, leading to a significant decline in its stock price [1][2] - The company's shares fell 22.4% following the results, marking the worst daily decline since 1998 and erasing approximately $120 billion from its market capitalization, although this decline may present a long-term buying opportunity [2] Earnings Performance - Earnings per share (EPS) were reported at $7.20, missing the Zacks Consensus Estimate of $7.27 but showing a 4.2% increase from the previous year's EPS of $6.16 [4] - Revenues grew by 9.8% year-over-year to $109.6 billion, falling short of the estimated $111.1 billion [4] - Optum revenues increased by 4.6% to $63.9 billion, while the medical ratio rose by 0.5 percentage points year-over-year to 84.8%, with management forecasting a ratio of 87%-88% for 2025 [4][6] Consumer Growth - The number of consumers served with self-funded commercial benefits increased by approximately 700,000 in the first quarter, and the number of seniors and complex needs patients served grew by 545,000, expected to reach 800,000 in 2025 [5] - The company's state-based community plans now serve 7.6 million members, and Optum Health anticipates serving 650,000 new value-based care patients in 2025 [5] Guidance Adjustments - UnitedHealth reaffirmed its revenue guidance for 2025 at $450-$455 billion but reduced its EPS guidance to $26.00-$26.50 from a previous range of $29.50-$30.00, citing increased care activity in Medicare Advantage and impacts from Medicare funding reductions [6] ETF Opportunities - Investors may consider ETFs with significant allocations to UnitedHealth, including iShares U.S. Healthcare Providers ETF (IHF), Health Care Select Sector SPDR Fund (XLV), JPMorgan Healthcare Leaders ETF (JDOC), Fidelity MSCI Health Care Index ETF (FHLC), and iShares U.S. Healthcare ETF (IYH) [3]