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Better Health Care ETF: Fidelity's FHLC vs. State Street's XLV
Key takeaways
- Both funds target the domestic healthcare sector, providing exposure to pharmaceuticals, biotechnology, and equipment providers.
- This choice between broad-market diversification and blue-chip concentration is a central consideration for investors looking to gain targeted sector exposure.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
XLV ^GSPC Investors choosing between the Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) and State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) may find that the former provides broader market-cap exposure while the latter offers superior liquidity and a higher trailing-12-month dividend yield.
Both funds target the domestic healthcare sector, providing exposure to pharmaceuticals, biotechnology, and equipment providers. While FHLC covers a wider range of company sizes including mid- and small-cap stocks, XLV focuses strictly on the healthcare components of the S&P 500.
This choice between broad-market diversification and blue-chip concentration is a central consideration for investors looking to gain targeted sector exposure.
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