Fidelity (FHLC) vs. iShares (IXJ): Which Healthcare ETF Delivers Better Value?
Compare global reach to domestic focus as these two funds reveal key differences in cost, risk, and portfolio makeup for healthcare investors.
Overview
Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) offers a low-cost, domestically focused portfolio, whereas iShares Global Healthcare ETF (NYSEMKT:IXJ) provides broader geographic diversification for investors seeking exposure to international medical giants.
Healthcare remains a cornerstone for long-term investors due to aging demographics and constant medical breakthroughs. While domestic giants like Eli Lilly dominate both portfolios, the presence of European and Asian healthcare firms in one of these funds creates a distinct risk profile. Both funds exhibit betas well below 1.00, suggesting they may be less volatile than the broader market, which is typical for the defensive healthcare sector. This comparison looks at how geographic reach affects costs and performance.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr 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.