FHLC vs. IYH: Which Healthcare ETF Is the Better Buy in 2026?
Portfolio size and stock selection set these healthcare ETFs apart and help shape their risk and return profiles.
FHLC vs. IYH: Which Healthcare ETF Is the Better Buy in 2026?
Overview
The Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) offers a significantly lower expense ratio and broader diversification than the iShares U.S. Healthcare ETF (NYSEMKT:IYH), which may appeal to cost-conscious investors seeking wide sector exposure.
These two healthcare ETFs provide exposure to the broad American medical sector, covering pharmaceutical giants, biotechnology innovators, and medical equipment providers. However, the funds differ significantly in their indexing methodology and stock selection. This article examines how those differences affect their diversification, yield potential, and overall cost structure.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
