Exchange-Traded Funds (ETFs) have transformed the landscape of investing, providing investors with an efficient and diversified way to gain exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: FHLC (Fidelity MSCI Health Care Index ETF) and IXJ (iShares Global Healthcare ETF). We will delve into essential aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
FHLC and IXJ are two distinct ETFs that focus on the healthcare industry, albeit with differing approaches. FHLC tracks the performance of the MSCI USA IMI Health Care Index, while IXJ aims to replicate the performance of the S&P Global 1200 Health Care Index. By comparing these ETFs, investors can gain insights into the nuances of healthcare-focused investments.
The FHLC ETF is designed to capture the performance of the entire healthcare sector within the United States. Its top holdings often include large pharmaceutical companies like Johnson & Johnson and Pfizer, as well as major biotech firms. In contrast, IXJ provides broader international exposure to the global healthcare industry, with top holdings ranging from American companies to international pharmaceutical giants. Understanding the sectors and top holdings of these ETFs is crucial for investors seeking exposure to specific healthcare subsectors or a more diversified global approach.
FHLC overlap FHLC VS IXJ
FHLC boasts a substantial asset under management (AUM) due to its popularity among investors who want targeted exposure to the US healthcare market. The ETF's strategy revolves around tracking the performance of the MSCI index, which includes a wide array of healthcare companies. IXJ's strategy is to replicate the S&P index's performance, providing investors with exposure to a broader spectrum of healthcare companies across the globe. These differing strategies can result in varying returns and levels of risk, making it essential for investors to align their preferences with the appropriate ETF.
When it comes to tracking and exposure, FHLC aims to mirror the performance of the MSCI index, which encompasses healthcare companies spanning different market capitalizations. On the other hand, IXJ tracks the S&P index, providing investors with a global perspective on the healthcare industry. Understanding the tracking methods and exposure provided by these ETFs can assist investors in making informed decisions based on their investment goals and risk tolerance.
FHLC and IXJ are two healthcare-focused ETFs that cater to distinct investment preferences. Whether investors seek exposure to the US healthcare sector through FHLC or desire a more comprehensive international approach with IXJ, both options offer unique advantages. For those seeking deeper insights into the holdings, correlations, overlaps, and other critical aspects of these ETFs, the ETF Insider app emerges as the ultimate tool. With its user-friendly interface, it empowers investors to explore and understand these financial instruments more comprehensively.
Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. It is crucial to conduct thorough research and consult with financial professionals before making investment decisions.
Sources:
https://www.etf.com/ FHLC ETF issuer
https://www.etf.com/FHLC FHLC ETF official page
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FHLC may be considered better than IXJ for some investors due to its specific focus, offering diversification.
IXJ's performance relative to FHLC will vary over time, depending on market conditions.
The choice between FHLC and IXJ should align with your investment goals, risk tolerance, and desired exposure.
Both FHLC and IXJ can be suitable investments depending on individual investment strategies, goals, and risk profiles.
The correlation between FHLC and IXJ can vary over time, reflecting differences in performance.