The Fidelity MSCI Health Care Index ETF (FHLC) has declined about 5% year-to-date, while the S&P 500 has risen 7%, and over five years FHLC returned 15% versus 80% for the S&P 500. FHLC tracks a broad healthcare index with 342 holdings but is heavily concentrated in a few large pharma stocks like Eli Lilly, which risks performance if those stocks falter. The fund offers low fees and modest dividends but has underperformed due to healthcare's slower growth compared to tech sectors. Investors seeking healthcare exposure might consider biotech or nursing home REITs, which have shown stronger returns. FHLC may suit a small defensive portfolio allocation but is not ideal as a core growth investment.
