FHLC charges a 0.08% expense ratio versus IYH’s 0.38%, offering cost savings and 334 holdings for U.S. healthcare exposure.
The Fidelity MSCI Health Care Index ETF (FHLC) undercuts the iShares U.S. Healthcare ETF (IYH) with an annual expense ratio of 0.08%, compared to 0.38% for IYH. The fee gap favors FHLC for long-term investors seeking targeted sector exposure.
Both ETFs hold blue-chip healthcare stocks, but FHLC tracks the MSCI USA IMI Health Care Index, encompassing 334 holdings. IYH’s narrower focus and higher costs may limit its appeal despite similar performance metrics.
The funds provide exposure to pharmaceuticals, biotechnology, and medical devices, with FHLC’s broader diversification and lower fees positioning it as a cost-efficient alternative.