5 Best Healthcare ETFs To Buy

4. Fidelity MSCI Health Care Index ETF (NYSE:FHLC)

5 Year Performance as of September 4: 38.46%

The Fidelity MSCI Health Care Index ETF (NYSE:FHLC) provides broad coverage of the entire U.S. healthcare market, encompassing over 300 companies of different sizes, including large, mid-sized, and small-cap, and spanning across more than 10 subsectors. This wide-ranging diversification reduces the fund’s reliance on dominant pharmaceutical giants and increases its exposure to sectors such as drug retailers and insurance within the healthcare industry. The benchmark index it tracks is the MSCI USA IMI Health Care 25/50 Index. As of September 1, 2023, Fidelity MSCI Health Care Index ETF (NYSE:FHLC) features an expense ratio of 0.08% and holds a portfolio containing 406 stocks.

Pfizer Inc. (NYSE:PFE) is a prominent holding of Fidelity MSCI Health Care Index ETF (NYSE:FHLC). Pfizer Inc. (NYSE:PFE) engages in the worldwide exploration, production, promotion, and distribution of biopharmaceutical products. It provides pharmaceuticals and vaccines across a range of therapeutic fields, including cardiovascular health, metabolic conditions, migraine, women’s health, and COVID-19. According to Insider Monkey’s second quarter database, Ric Dillon’s Diamond Hill Capital is a notable stakeholder of the company, with 6.9 million shares worth $253 million.

Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”