Which Healthcare ETF Is the Better Buy: Fidelity's Broad FHLC or Simplify's Actively Managed PINK?
Fidelity's broad, low-cost index approach goes head-to-head with an actively managed, mission-driven healthcare fund.
Overview
Investors choosing between Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) and Simplify Health Care ETF (NYSEMKT:PINK) must decide between a low-cost, diversified indexing strategy and an actively managed, concentrated portfolio with a charitable mandate.
The healthcare sector offers a combination of stable defensive assets and high-growth biotechnology opportunities. While FHLC provides broad exposure to the entire U.S. healthcare market, PINK focuses on a more select group of innovators. This comparison examines whether the active approach of PINK justifies its higher costs.
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.
Source
Originally published at www.fool.com.