XLV vs FHLC: Which Healthcare ETF Fits Your Portfolio?
State Street's concentrated 60-stock approach outpaced Fidelity's broader 365-holding fund over five years, though both charge identical 0.08% fees.
Overview
The Health Care Select Sector SPDR ETF (NYSEMKT:XLV) and the Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) both offer low-cost exposure to domestic healthcare, but they differ significantly in their market-cap focus and liquidity profiles.
The healthcare sector can serve as a defensive anchor for diversified portfolios, offering a mix of steady pharmaceutical giants and high-growth biotech companies. This comparison examines how these two funds track the industry using different indexing strategies, highlighting their structural contrasts and historical risk-adjusted returns.
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.