What do the expense ratios tell us about FHLC and FTEC?

Both FHLC and FTEC have an identical expense ratio of 0.08%. This annual fee is deducted from the fund's assets and does not affect their tracking of their respective indices. Because the fee is the same, it does not create a cost advantage for one fund over the other. Investors should focus on other factors like holdings and risk when comparing them, as the cost structure is a neutral element in this specific comparison. The expense ratio is a standard fee applied to all investors in the fund.

Which sector exposures do FHLC and FTEC represent?

FHLC is a health care sector ETF, while FTEC is an information technology sector ETF. This means their performance is primarily influenced by trends within those distinct industries. Health care may be driven by factors like demographic changes or regulatory policy, while technology might be influenced by innovation cycles or interest rates. Comparing them helps investors understand how different economic themes can shape fund performance. Their exposures are largely complementary rather than overlapping, offering different avenues for thematic allocation within a diversified portfolio.

How similar are the top holdings of FHLC and FTEC?

The top holdings of FHLC and FTEC are completely different, with no overlap in their top ten positions. FHLC's largest holdings include companies like LLY and JNJ, which are major players in the health care sector. In contrast, FTEC's top positions are dominated by technology giants such as NVDA and AAPL. This lack of overlap means that owning both funds would give you distinct and separate exposures to the health care and technology sectors, rather than a concentrated bet on shared mega-cap stocks.

How do the dividend yields of FHLC and FTEC compare?

FHLC offers a dividend yield of 1.24%, which is relatively higher for a sector ETF focused on growth. FTEC has a much lower yield of 0.37%. This difference reflects the typical payout policies of the underlying companies; health care firms often return more cash to shareholders via dividends compared to technology firms, which frequently reinvest earnings into growth and development. Investors seeking current income might consider FHLC's higher yield, but should remember that sector ETFs are primarily designed for capital appreciation.

What is the significance of their identical inception dates?

Both FHLC and FTEC were launched on 21 October 2013. This shared inception date means that both funds have been available to investors for the same period, providing an identical timeframe for their track records. When looking at historical performance charts, data from before October 2013 would not be from the funds themselves but from the index they track. The identical launch date simplifies comparisons of their operational history, as they have both been subject to the same macroeconomic conditions throughout their lifespans.

How does their differing AUM affect an investor?

FTEC has significantly more net assets ($21.3 billion) compared to FHLC ($3.5 billion). A larger AUM can sometimes lead to tighter bid-ask spreads and potentially greater liquidity, making it easier to buy and sell large blocks of shares without impacting the price. However, FHLC's smaller size is still substantial. This difference is a practical consideration for investors, particularly those trading large volumes. For most retail investors, both funds are likely liquid enough, but the AUM provides context about their relative market adoption.

How might interest rates affect the two funds differently?

Sector ETFs can respond differently to changes in interest rates. As a technology ETF, FTEC's holdings are often sensitive to rate changes, as higher rates can reduce the present value of future growth, a key factor for tech firms. Health care, represented by FHLC, may be less directly tied to growth stock dynamics but can be influenced by other factors like consumer spending and regulation. An investor's view on the future path of interest rates could therefore shape their relative outlook on these two distinct sector exposures.

What kind of company is likely to be in each fund?

The top holdings reveal the typical company profiles. FHLC is weighted heavily towards large-cap, established firms like LLY and JNJ, which are pillars of the health care industry. FTEC is dominated by market-leading, high-growth technology companies such as NVDA and AAPL. These funds provide access to different market segments. Health care giants are often characterised by steady demand, while technology leaders are associated with periods of rapid innovation and expansion. The composition reflects the nature of each sector's major contributors.

Why might an investor consider one fund over the other?

The choice typically comes down to a desired sector exposure rather than a preference between the funds themselves. An investor might consider FHLC if they want exposure to health care trends, which can include pharmaceuticals and medical technology. They might select FTEC for a direct bet on the technology sector's growth, including software and semiconductors. Each fund fulfils a specific role in asset allocation, allowing investors to implement a particular view on the economy or diversify across different industries.

What should beginners keep in mind when reading these comparison figures?

Beginners should focus on understanding what the figures represent. The expense ratio is a cost. Dividend yield is one type of return, not the only one. Top holdings show the fund's primary bets. Net assets give a sense of the fund's size. Sector and index tracking define the fund's purpose. It's crucial to remember that past yield or holdings data does not predict future performance. These figures are a snapshot for analysis, and a comprehensive investment strategy requires looking beyond just two sector ETFs.

Are there any risks in only holding these two sector ETFs?

Holding only FHLC and FTEC concentrates your portfolio in the health care and technology sectors. This exposes you to risks that are specific to those industries, such as regulatory changes in health care or technological disruption in the tech sector. A well-diversified portfolio typically includes a broader mix of assets, like bonds, international stocks, and other equity sectors. This comparison is educational and should not be considered a recommendation or a complete investment plan. Always conduct thorough research.

What are the key takeaways from comparing FHLC and FTEC?

The comparison highlights that despite identical fees, FHLC and FTEC offer vastly different sector exposures with minimal overlap in their largest holdings. FTEC's higher AUM and lower yield reflect its focus on large technology firms, while FHLC's slightly higher yield is consistent with mature health care companies. Understanding these fundamental differences in purpose, cost, income, and risk drivers helps investors make informed decisions. For more information on these or any financial products, you should consult a qualified financial advisor.

FHLC vs FTEC

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare the Fidelity MSCI Health Care ETF (FHLC) and the Fidelity MSCI Information Tech ETF (FTEC). This page examines their identical 0.08% expense ratios, distinct top holdings like LLY and NVDA, dividend yields, and how each fund tracks its respective sector market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FHLC

Metric

FTEC

0.08%

Expense Ratio

0.08%

1.24%

Dividend Yield

0.37%

$3.48B

Net Assets

$21.25B

349

Holdings

298

Oct 21, 2013

Inception Date

Oct 21, 2013

–

Index Tracked

–

Health

Fund Category

Technology

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

FHLC vs VHT

Compare FHLC and VHT ETFs. We examine expense ratios, net assets, dividend yields, and top holdings to help you understand the differences between them.

FHLC vs SCHD

Compare FHLC and SCHD ETFs on expense ratios, holdings and yields. FHLC tracks healthcare, SCHD targets dividend equities, with shared top-10 holdings.

FHLC vs VOO

Compare FHLC and VOO ETFs. Review expenses, holdings, dividends and tracking for Fidelity MSCI Health Care vs Vanguard S&P 500. Neutral data.

Investment Analysis

FHLC

Pros

The fund offers a low 0.08% expense ratio, minimising investment costs for health care sector exposure.
With $3.5 billion in net assets and inception in 2013, the fund maintains reasonable liquidity and market longevity.
It features a 1.24% dividend yield, which is comparatively high for an equity sector ETF.

Considerations

Health care sector concentration increases vulnerability to regulatory and pricing pressures specific to this industry.
The dividend yield of 1.24% is relatively low compared to many value-focused income funds.
Top holdings include large-cap names like LLY and JNJ, limiting broad diversification beyond mega caps.

FTEC

Pros

FTEC provides access to information technology at a low 0.08% expense ratio, enhancing net return potential.
Net assets of $21.3 billion support strong liquidity and tight bid-ask spreads for investors.
The fund's inception date of October 21, 2013, establishes a long track record in the market.

Considerations

A 0.37% dividend yield is minimal, offering limited income generation to investors.
High concentration in NVDA, AAPL, and MSFT exposes the fund to significant idiosyncratic risk from top holdings.
Focus on the technology sector results in vulnerability to interest rate changes and technological disruption.

Related Market Insights

Dow's Record Rally: Value Takes The Lead

The Dow Jones hits 48,000, signalling a major market shift. Discover how value stocks, especially healthcare & financials, are leading this rally. Invest with Nemo.

Aimee Silverwood | Financial Analyst

13 November 2025

Read Insight

Related Market Insights

Dow's Record Rally: Value Takes The Lead

The Dow Jones hits 48,000, signalling a major market shift. Discover how value stocks, especially healthcare & financials, are leading this rally. Invest with Nemo.

Aimee Silverwood | Financial Analyst

13 November 2025

Read Insight

About FHLC and FTEC

FHLC (FHLC)

FTEC (FTEC)

The Fidelity MSCI Information Tech ETF offers investors a cost-effective way to gain exposure to the U.S. technology sector. With an expense ratio of just 0.08%, this fund tracks a broad index of American companies involved in software, hardware, and services. Holding 298 different stocks, it provides diversified access to the sector's largest players as well as smaller emerging firms. Since its inception in October 2013, the fund has amassed substantial assets, currently exceeding USD 21 billion. Investors should note that while the fund offers low fees and wide coverage, its performance is directly tied to the technology sector's cyclical nature and growth prospects. Like all investments, values can rise and fall.

Which Baskets Do They Appear In?

Dow Record Rally: What's Next for Value Stocks?

The Dow Jones Industrial Average reached a historic high, closing above 48,000, fueled by the end of a government shutdown and a market rotation into value stocks. This shift suggests an investment opportunity in the outperforming healthcare and financial sectors, which are leading the charge.

Published: 13 November 2025

Explore Basket

Which Baskets Do They Appear In?

Dow Record Rally: What's Next for Value Stocks?

Published: 13 November 2025

Explore Basket

Buy FHLC or FTEC in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

FHLC vs FTEC

Fund Snapshot