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FHLC - ETF AI Analysis

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FHLC

Fidelity MSCI Health Care Index ETF (FHLC)

Rating:71Outperform
Price Target:
FHLC, the Fidelity MSCI Health Care Index ETF, earns a solid overall rating thanks to major holdings like Johnson & Johnson and Merck, which bring strong financial performance, positive earnings outlooks, and attractive or fair valuations to the portfolio. Other key positions such as Eli Lilly, UnitedHealth, and Amgen also support the rating with robust growth and strategic initiatives, though their higher leverage, cash flow challenges, and occasional valuation concerns introduce some risk. The main risk factor for the ETF is its concentrated exposure to the health care sector, where company-specific issues like debt levels, regulatory and product challenges, and mixed technical signals can impact performance.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past three months and year-to-date, indicating positive recent momentum.
Leading Health Care Holdings
Several of the largest positions, such as Eli Lilly, Johnson & Johnson, AbbVie, UnitedHealth, Merck, and Amgen, have delivered strong year-to-date results that support the fund’s overall performance.
Low Expense Ratio
The fund’s relatively low expense ratio helps investors keep more of their returns over time.
Negative Factors
High Sector Concentration
With almost all assets in health care, the ETF is heavily exposed to the ups and downs of a single sector.
Limited Geographic Diversification
The fund is almost entirely invested in U.S. companies, offering little exposure to health care opportunities in other regions.
Mixed Performance Among Top Holdings
While many top holdings are performing well, some large positions like Thermo Fisher and Abbott Laboratories have shown weaker year-to-date results, which can drag on overall returns.

FHLC vs. SPDR S&P 500 ETF (SPY)

FHLC Summary

FHLC is the Fidelity MSCI Health Care Index ETF, which follows the MSCI US IMI 25/50 Health Care index. It invests in a wide range of U.S. health care companies, including drug makers, biotech firms, medical device makers, and health care providers. Well-known holdings include Eli Lilly and Johnson & Johnson. Someone might invest in FHLC to tap into long-term growth driven by an aging population and ongoing medical innovation, while also diversifying within the health care sector. A key risk is that it is heavily concentrated in health care, so it can rise or fall sharply with that sector.
How much will it cost me?The Fidelity MSCI Health Care Index ETF (FHLC) has an expense ratio of 0.084%, meaning you’ll pay $0.84 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking an index rather than relying on active management strategies.
What would affect this ETF?The FHLC ETF, focused on the U.S. health care sector, could benefit from ongoing innovation in biotechnology and pharmaceuticals, as well as increasing demand for health care services driven by aging populations and advancements in medical technology. However, it may face challenges from regulatory changes, drug pricing pressures, or economic downturns that could impact health care spending. Its reliance on top holdings like Eli Lilly and Johnson & Johnson means company-specific events could also significantly influence performance.

FHLC Top 10 Holdings

FHLC is essentially a bet on Big Pharma and U.S. health care, with Eli Lilly, Johnson & Johnson, AbbVie, UnitedHealth, and Merck steering the ship. Lilly has been rising over the past few months and is a key engine for performance, while J&J, AbbVie, and Merck are steadily adding fuel with solid, broad-based growth. UnitedHealth has bounced back after some earlier worries, helping the fund’s momentum. On the flip side, Thermo Fisher and Abbott look more mixed, occasionally losing steam and tempering returns. Overall, it’s a U.S.-centric, pharma-heavy story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Eli Lilly & Co13.85%$450.87M$1.13T48.19%
72
Outperform
Johnson & Johnson9.08%$295.64M$634.77B60.00%
78
Outperform
AbbVie6.61%$215.14M$458.24B36.28%
66
Neutral
UnitedHealth5.59%$182.01M$382.09B48.04%
72
Outperform
Merck & Company4.69%$152.72M$323.72B55.56%
80
Outperform
Thermo Fisher3.09%$100.69M$211.18B15.38%
72
Outperform
Amgen2.91%$94.81M$202.95B24.88%
77
Outperform
Abbott Laboratories2.55%$83.07M$179.51B-17.30%
73
Outperform
Gilead Sciences2.36%$76.90M$160.55B15.47%
78
Outperform
Pfizer2.07%$67.35M$139.86B1.48%
74
Outperform

FHLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
75.29
Positive
100DMA
72.82
Positive
200DMA
72.84
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FHLC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 78.71, equal to the 50-day MA of 75.29, and equal to the 200-day MA of 72.84, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHLC.

FHLC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$3.37B0.08%
71
Outperform
$18.17B0.09%
71
Outperform
$9.35B0.44%
65
Neutral
$3.41B0.38%
73
Outperform
$3.01B0.38%
74
Outperform
$1.00B0.61%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FHLC
Fidelity MSCI Health Care Index ETF
80.50
17.64
28.06%
VHT
Vanguard Health Care ETF
IBB
iShares Biotechnology ETF
IYH
iShares U.S. Healthcare ETF
IHI
iShares U.S. Medical Devices ETF
FXH
First Trust Health Care AlphaDEX Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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