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FHLC - ETF AI Analysis

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FHLC

Fidelity MSCI Health Care Index ETF (FHLC)

Rating:72Outperform
Price Target:
FHLC, the Fidelity MSCI Health Care Index ETF, earns a solid overall rating largely because many of its biggest holdings—like Merck, Johnson & Johnson, and Eli Lilly—show strong financial performance, positive earnings call commentary, and strategic initiatives that support long-term growth. However, some key positions face risks such as high debt, valuation concerns, and challenges in specific business segments, and the fund’s focus on the health care sector means investors are exposed to sector-specific and regulatory risks.
Positive Factors
Low Expense Ratio
The fund charges relatively low fees, which helps investors keep more of their returns over time.
Broad Health Care Exposure
The ETF holds a wide range of health care companies across pharmaceuticals, equipment, and services, reducing reliance on any single business.
Large, Established Top Holdings
Many of the biggest positions are well-known, mature health care companies with generally steady performance, which can add stability to the fund.
Negative Factors
Sector Concentration Risk
Almost all assets are in the health care sector, so the fund could be hit hard if health care stocks fall out of favor.
Heavy Reliance on a Few Stocks
A small number of companies, especially the largest holding, make up a significant share of the portfolio, increasing the impact if those stocks struggle.
Recent Weak Overall Performance
The ETF’s returns over the year to date and recent three-month period have been weak, suggesting the health care sector has faced headwinds lately.

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

FHLC Summary

The Fidelity MSCI Health Care Index ETF (FHLC) is a fund that follows the MSCI US IMI 25/50 Health Care Index, giving you broad exposure to U.S. health care companies. It holds well-known names like Eli Lilly and Johnson & Johnson, along with drug makers, medical device companies, and health care service providers. Someone might invest in FHLC to tap into the long-term growth and stability of the health care sector while spreading risk across many companies. A key risk is that it is heavily concentrated in health care, so it can rise or fall with that sector’s fortunes.
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 very much a U.S. health care story, with big pharma and managed care calling the shots. Eli Lilly has been the star of the show lately, helping drive the fund as its momentum in new treatments keeps investors excited. UnitedHealth and Merck are also pulling their weight, adding steady strength from insurance and traditional pharma. On the flip side, Thermo Fisher and Intuitive Surgical have been losing steam, acting as a bit of a drag. Overall, the ETF is highly concentrated in large U.S. health care names, not broader global markets.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Eli Lilly & Co12.79%$360.97M$1.00T49.22%
72
Outperform
Johnson & Johnson8.78%$247.83M$564.11B53.22%
78
Outperform
AbbVie5.90%$166.49M$381.10B17.70%
66
Neutral
UnitedHealth5.73%$161.77M$352.79B31.43%
72
Outperform
Merck & Company4.55%$128.31M$302.33B57.78%
80
Outperform
Amgen2.92%$82.45M$183.12B24.90%
77
Outperform
Thermo Fisher2.80%$78.99M$166.59B13.87%
72
Outperform
Gilead Sciences2.73%$76.95M$166.82B25.14%
78
Outperform
Intuitive Surgical2.45%$69.18M$155.16B-18.80%
78
Outperform
Pfizer2.42%$68.17M$147.62B11.06%
74
Outperform

FHLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
70.46
Positive
100DMA
72.49
Negative
200DMA
70.67
Positive
Market Momentum
MACD
0.17
Negative
RSI
61.50
Neutral
STOCH
91.06
Negative
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 70.30, equal to the 50-day MA of 70.46, and equal to the 200-day MA of 70.67, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 91.06 is Negative, 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
$2.94B0.08%
72
Outperform
$16.40B0.09%
72
Outperform
$8.23B0.35%
57
Neutral
$8.05B0.44%
66
Neutral
$3.19B0.38%
74
Outperform
$2.91B0.38%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FHLC
Fidelity MSCI Health Care Index ETF
72.17
10.61
17.24%
VHT
Vanguard Health Care ETF
XBI
SPDR S&P BIOTECH ETF
IBB
iShares Biotechnology ETF
IHI
iShares U.S. Medical Devices ETF
IYH
iShares U.S. Healthcare ETF
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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