Fidelity vs VanEck Healthcare ETFs: Broad Exposure or Pharma Focus
VanEck's concentrated 26-stock portfolio has outpaced Fidelity's broader 334-holding fund over five years, but at a steeper cost and higher volatility.
Overview
The Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provides broad, low-cost exposure to the entire healthcare sector, whereas the VanEck Pharmaceutical ETF (NASDAQ:PPH) offers a concentrated, higher-yielding focus on global pharmaceutical giants.
Investors choosing between these funds must decide between industry breadth and narrow specialization. Both funds serve as defensive anchors for an equity portfolio, but they differ significantly in their construction. The Fidelity fund captures the diverse breadth of the medical world, including equipment and services, while the VanEck fund drills specifically into the world's largest drug manufacturers. This comparison helps identify whether a broad sector tilt or a specific industry focus better fits a diversified portfolio.
Details
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-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on Aug. 20, 2026.
Source
Originally published at www.fool.com.