Fidelity's FHLC beats iShares' IXJ in long-term performance and cost efficiency, making it the preferred healthcare sector play for investors prioritizing returns and lower management fees.
The article explicitly states that the Fidelity ETF outperforms IXJ across all measured periods and recommends FHLC as the superior choice due to better performance and lower costs.
The article identifies FHLC as the 'hands down choice' over its competitor due to superior long-term returns and a significantly lower expense ratio.
Eli Lilly is cited as a top holding in both compared ETFs and is explicitly recommended by The Motley Fool's Stock Advisor service mentioned in the text.
Johnson & Johnson is listed as a major position in both funds and is noted as being recommended by The Motley Fool.
AbbVie is identified as a key holding in both ETFs and is explicitly recommended by The Motley Fool.
The Fidelity MSCI Health Care Index ETF (FHLC) emerges as the superior choice for investors, consistently outperforming the iShares Global Healthcare ETF (IXJ) across three-, five-, and ten-year periods. While IXJ offers broader international exposure, FHLC provides a more cost-effective, U.S.-centric vehicle with a significantly lower expense ratio of 0.08% compared to IXJ's 0.38%.
The Fidelity MSCI Health Care Index ETF (FHLC) is more cost-effective, featuring an expense ratio of 0.08% compared to the 0.38% charged by the iShares Global Healthcare ETF (IXJ).
IXJ offers broader geographic diversification, with 26% of its assets in non-U.S. developed markets and 1% in emerging markets, while FHLC is strictly focused on the U.S. market.