FHLC is conducted by Fidelity. The fund tracks the performance of the MSCI USA IMI Health Care Index.
The index covers U.S. small-, mid- and large-cap stocks that fall into the health care sector.
By Guy Avtalyon
Fidelity MSCI Health Care ETF (FHLC, $43.60) with the current price at $48.31 ( December, 9). It is a cheap fund that covers almost the complete health care range. The investors will like this broad-based health care fund. This cheap index fund covers the complete healthcare waterfront. Fidelity MSCI Health Care ETF holds 28% of assets in pharmaceutical companies, approximately a quarter in health care facilities, and 19% in biotechs.
The other assets in its portfolio are spread on health insurance companies, health care services, supplies, and equipment.
It is one of the industry’s giants, the other is the Vanguard Health Care ETF. It holds shares of Johnson & Johnson, UnitedHealth, Pfizer (PFE), Abbott Laboratories, etc.
Many investors will like more of these large-spread funds than some small but aggressive biotech stocks. Yes, you will never reach the large gains but this kind of investment is safer during the market downturns. Everyone will need health care no matter what is the condition of the market or economy.
Fidelity MSCI Health Care ETF and Vanguard Health Care ETF provides:
Dividend yield: 2.1%
3-year return: 9.9%
5-year return: 9.2%
Fidelity MSCI Health Care Index ETF trades on the New York Stock Exchange (NYSE)Arca under the ticker name FHLC.
Should you invest in the Fidelity Msci Health Care fund?
According to analysts, the Fidelity Msci Health Care fund be a profitable investment option for investors with a long horizon.
Based on analyst’s estimates, investors can expect a long-term increase.
For example, with a 5-year investment, the revenue could be around +10%. If you invest, let’s say $10.000 ( Traders Paradise likes this amount obviously) after 5 years your investment is possible to increase up to $11.000 which means you will have a $1.000 in profit.
Who sold who bought Fidelity MSCI
During the last 3 months, some institutional investors purchased FHLC stock. For example Karp Capital Management Corp, Virtu Financial LLC, FormulaFolio Investments LLC, Mackey Komara & Dankovich LLC, Full Sail Capital LLC, CWM LLC, Tower Research Capital LLC TRC, Eldridge Investment Advisors Inc. Maybe it isn’t bad to follow their example.
But some have sold Fidelity MSCI Health Care Index ETF stocks. For example Global Retirement Partners LLC, Boston Private Wealth LLC, BB&T Securities LLC, Commonwealth Equity Services LLC, Stifel Financial Corp, Traynor Capital Management Inc., Fisher Asset Management LLC or Sigma Planning Corp.
We mentioned them just in case you follow some of them.
Anyway, Fidelity MSCI Health Care Index ETF is a good long-term investment.
You can buy FHLC shares through online brokerages that have access to the US stock market. For instance, you can do that over TD Ameritrade, E*TRADE, Charles Schwab, and some others.
If you do that today, you will need to pay $48.31 per share of FHLC stock. Its market capitalization is $1.61 billion.
There are some risks when investing in funds. They can also lose money during market downturns. If the fund has a narrow focus it can be sensitive to particular industry risks. For example, changing the regulatory situation. Further, if some of the bigger shareholders experience sharp price decline it may influence the whole fund.
But, honestly, the risk involved in healthcare funds is lower than with other funds. At the same time, the returns are a lot above average,
The fund’s risk compared with that of other funds in the health peer group for the trailing three years is considered below average by Morningstar. The level of return of Fidelity MSCI Health Care Index ETF is rated as above average for the past three years.