XBI VS FHLC
4 min read
By Ron Koren, ETF Insider

XBI VS FHLC

Exchange-Traded Funds (ETFs) have transformed the landscape of investing, offering a diverse range of exposures across different sectors and asset classes. In this article, we will undertake a comprehensive comparison between two prominent ETFs: XBI (SPDR S&P Biotech ETF) and FHLC (Fidelity MSCI Health Care Index ETF). We'll delve into various aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

XBI Vs FHLC: Overview

XBI and FHLC are two ETFs that target distinct corners of the market. While XBI focuses on the biotechnology sector, FHLC tracks the performance of companies within the healthcare industry. This difference in focus results in contrasting risk profiles and potential returns, which we will explore further in the subsequent sections.

XBI Vs FHLC: Sectors and Top Holdings

The XBI ETF primarily concentrates on biotechnology companies, aiming to capture the growth potential of innovative medical advancements. In contrast, FHLC includes a broader spectrum of healthcare-related companies, encompassing pharmaceuticals, medical equipment, and healthcare services. Analyzing the sectors and top holdings aids investors in choosing the ETF that aligns with their investment objectives and risk appetite.

XBI  overlap XBI VS FHLCXBI overlap XBI VS FHLC

XBI Vs FHLC: Capitalization and Strategy

XBI's asset under management (AUM) reflects the strong demand for exposure to the biotech sector. The ETF's strategy revolves around capturing the performance of biotechnology companies, which can experience substantial volatility due to regulatory approvals and scientific breakthroughs. FHLC's approach involves tracking the MSCI USA IMI Health Care Index, providing investors with exposure to a diversified basket of healthcare stocks. The differences in capitalization and strategy between XBI and FHLC create varying opportunities for investors seeking growth or stability.

XBI Vs FHLC: Tracking and Exposure

XBI tracks an index that includes a broad range of biotech companies, aiming to mirror the performance of this dynamic sector. FHLC, on the other hand, provides exposure to the broader healthcare industry, including pharmaceutical giants, medical device manufacturers, and healthcare providers. The tracking and exposure methods differ, with XBI focused on capturing the innovative potential of biotech companies and FHLC offering a more comprehensive view of the healthcare landscape.

Conclusion

XBI and FHLC are distinctive ETFs, each catering to a specific niche within the healthcare realm. Whether you're intrigued by the potential of cutting-edge biotech or the stability of established healthcare corporations, these ETFs offer exposure to sectors that play crucial roles in our lives. For those who wish to explore deeper insights into holdings, correlations, overlaps, and more, ETF Insider provides an invaluable tool. With its user-friendly app, ETF Insider empowers investors with comprehensive information about these financial instruments.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

Sources:

XBI ETF issuer: https://www.ssga.com/
XBI ETF official page: https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-sp-biotech-etf-xbi

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FAQ

  • Why is XBI better than FHLC?

    XBI may be considered better than FHLC for some investors due to its specific focus, offering diversification.

  • Does FHLC beat XBI?

    FHLC's performance relative to XBI will vary over time, depending on market conditions.

  • Should I invest in XBI or FHLC?

    The choice between XBI and FHLC should align with your investment goals, risk tolerance, and desired exposure.

  • Are XBI and FHLC good investments?

    Both XBI and FHLC can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between XBI and FHLC?

    The correlation between XBI and FHLC can vary over time, reflecting differences in performance.