Better Healthcare ETF: Fidelity's Broad, Low-Cost FHLC vs. State Street's XBI Targeting Biotech
The Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provides broad, low-cost exposure to the entire healthcare sector, whereas the State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) offers a narrower, more volatile focus on biotechnology. Both funds target the healthcare space but with different strategies. The Fidelity fund uses a market-cap-weighted approach across the broad industry, while the State Street fund utilizes an equal-weighted index to capture the potential growth of smaller biotechnology companies. Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. Continue reading