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

XLV VS FHLC

Exchange-Traded Funds (ETFs) have transformed the investment landscape by offering diversification across various sectors and asset classes. In this article, we will conduct an in-depth analysis of two prominent healthcare ETFs: XLV (Health Care Select Sector SPDR Fund) and FHLC (Fidelity MSCI Health Care Index ETF). We'll explore a range of dimensions including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

XLV Vs FHLC: Overview

XLV and FHLC are two healthcare ETFs, but they differ in their approach to the sector. XLV tracks the health care sector's performance in the S&P 500 Index, encompassing a broad range of healthcare-related companies. FHLC, on the other hand, follows the MSCI USA IMI Health Care Index and focuses on large and mid-cap healthcare stocks. This distinction in focus leads to distinct exposures and risk profiles, which we will delve into further.

XLV Vs FHLC: Sectors and Top Holdings

The XLV ETF provides exposure to various healthcare subsectors, including pharmaceuticals, biotechnology, and medical equipment. Its top holdings typically include companies like Johnson & Johnson, Pfizer, and UnitedHealth Group. In contrast, FHLC emphasizes sectors such as pharmaceuticals and healthcare equipment, with holdings in companies like Johnson & Johnson, Pfizer, and Merck & Co. Understanding these sectors and top holdings is essential for investors aiming to align their investments with specific healthcare areas.

XLV  overlap XLV VS FHLCXLV overlap XLV VS FHLC

XLV Vs FHLC: Capitalization and Strategy

XLV boasts a substantial asset under management (AUM), signifying its popularity among investors interested in healthcare exposure. FHLC, managed by Fidelity, focuses on replicating the performance of the MSCI USA IMI Health Care Index. Their differing capitalizations and strategies lead to varying potential for returns and risk, factors that investors must evaluate cautiously.

XLV Vs FHLC: Tracking and Exposure

XLV aims to provide investors with exposure to the performance of the health care sector within the S&P 500 Index. It includes companies from various subsectors, offering a broad representation of the industry. FHLC, being index-based, seeks to track the MSCI USA IMI Health Care Index, offering exposure to the broader healthcare landscape. Investors can benefit from understanding the tracking mechanisms and exposure strategies employed by these ETFs to make informed decisions.

Conclusion

XLV and FHLC present distinct opportunities for investors seeking healthcare exposure. Their differing focuses on sectors, top holdings, and strategies create unique investment propositions. For investors looking to gain deeper insights into holdings, correlations, overlaps, and other crucial details, ETF Insider stands as the ultimate tool. This user-friendly app equips users with extensive information on these financial instruments and more.

Disclaimer: This article does not provide any investment advisory services.

Sources:

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FAQ

  • Why is XLV better than FHLC?

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

  • Does FHLC beat XLV?

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

  • Should I invest in XLV or FHLC?

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

  • Are XLV and FHLC good investments?

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

  • What is the correlation between XLV and FHLC?

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