Fidelity Healthcare ETF vs. iShares Pharma Fund: Which Wins?
Fidelity's lower 0.08% fee and broader 338-stock portfolio contrast sharply with iShares' concentrated pharma play, which delivered 60% returns in one year.
Overview
While Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provides broad healthcare exposure at a very low cost, iShares U.S. Pharmaceuticals ETF (NYSEMKT:IHE) offers a concentrated focus on the domestic pharmaceutical sector for investors seeking industry-specific depth.
Investors looking to capitalize on medical innovation often choose between broad sector funds and specialized industry niches. This comparison explores how the diversified Fidelity fund compares against the targeted iShares pharmaceutical fund, assessing whether broader diversification or sector concentration better suits specific portfolio objectives within the American healthcare market. The choice often hinges on whether an investor wants exposure to medical devices and services or just pure-play drug manufacturers.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.