Fidelity’s FHLC provides broader market-cap exposure, while State Street’s XLV delivers higher liquidity and a 1.7% dividend yield.
Investors comparing the Fidelity MSCI Health Care Index ETF (FHLC) and State Street’s Health Care Select Sector SPDR ETF (XLV) face a trade-off between diversification and liquidity. FHLC includes mid- and small-cap stocks, while XLV focuses solely on S&P 500 healthcare components, offering concentrated large-cap exposure.
Both funds charge a 0.08% expense ratio, but XLV leads in income generation with a 1.7% trailing-12-month dividend yield, compared to FHLC’s 1.4%. The funds target similar sectors, including pharmaceuticals and biotechnology, but differ in risk profiles and growth potential.
The choice hinges on investor priorities: broader market exposure via FHLC or blue-chip stability and higher income from XLV.