What is the fundamental difference in investment strategy between FHLC and VOO?

FHLC is a sector-specific ETF focused exclusively on the healthcare industry, aiming to track the performance of that particular market segment. In contrast, VOO is a broad-market ETF designed to replicate the S&P 500 index, which includes 500 large-cap companies from various sectors such as technology, finance, and consumer goods. Essentially, FHLC offers concentrated exposure to one industry, while VOO provides diversified exposure across the entire US equity market. This distinction is crucial for understanding risk profiles: sector funds are typically more volatile than broad market funds because their performance is tied to the health of a single industry rather than the broader economy.

How does an expense ratio affect long-term investment returns?

An expense ratio is an annual fee charged by a fund to manage your investment, deducted directly from the fund's assets. It represents a cost that reduces your overall return, regardless of whether the fund performs well or poorly. Even small differences can compound significantly over long periods. For example, holding a fund with a higher expense ratio means a larger portion of your capital is consistently eaten by fees, leaving less to grow. When comparing ETFs, looking at these ratios helps investors understand the cost efficiency of the vehicle, independent of its underlying market performance.

How do the expense ratios of FHLC and VOO compare?

VOO has a significantly lower expense ratio of 0.03%, compared to FHLC's 0.08%. This 0.05 percentage point difference means that for every $10,000 invested, VOO charges approximately $3 per year, while FHLC charges $8. While this absolute dollar difference is modest in the short term, it accumulates over decades due to compounding. Investors seeking the most cost-effective way to own the S&P 500 often prefer funds like VOO, whereas sector-specific funds like FHLC generally have slightly higher costs due to the narrower scope of their benchmark indices.

Do FHLC and VOO share any top holdings?

No, there is no overlap between the top ten holdings of FHLC and VOO. FHLC's largest positions are dominated by major healthcare companies such as Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV). Conversely, VOO's top holdings are primarily large-cap technology and communication firms, led by NVIDIA (NVDA), Apple (AAPL), and Microsoft (MSFT). This lack of shared top holdings underscores the fundamental difference in their composition: FHLC is strictly confined to the healthcare sector, while VOO reflects the current weighting of the broader S&P 500, where mega-cap tech plays a substantial role.

How do the dividend yields of these two ETFs differ?

FHLC currently offers a higher dividend yield of 1.24%, whereas VOO provides a yield of 1.03%. A higher yield means that for each dollar invested, FHLC is distributing slightly more income to shareholders relative to its price. This difference can be attributed to the underlying companies in each index; healthcare firms often pay consistent dividends, while the top holdings in the S&P 500, particularly in the technology sector, may retain more earnings for growth rather than distributing them. Investors focused on immediate income generation might view this yield spread as a relevant factor in their analysis.

What are the key differences in the assets tracked by each fund?

FHLC is classified as a 'Health' category ETF, meaning its performance is tied directly to the healthcare sector's valuation, regulatory environment, and innovation cycles. VOO is a 'Large Blend' ETF, tracking the S&P 500, which is a proxy for the overall US large-cap market. Consequently, FHLC is susceptible to sector-specific risks, such as changes in pharmaceutical policy, while VOO is subject to broader economic trends. If the general market declines, VOO will likely fall, but FHLC might perform differently depending on whether the healthcare sector outperforms or underperforms during that same period.

How does concentration risk differ between FHLC and VOO?

FHLC inherently carries higher concentration risk because it is limited to the healthcare industry; if this specific sector faces a downturn, the fund will likely suffer significant losses without the buffer of other industries. VOO, while diversified across 500 companies, still exhibits concentration in its largest holdings. The top ten companies in VOO account for approximately 32.6% of its assets, heavily weighted toward mega-cap tech firms like NVDA and AAPL. Therefore, while VOO is broadly diversified, it is still sensitive to the performance of a small group of dominant market leaders.

What is the historical track record of these funds?

VOO has been in operation since September 7, 2010, providing a track record of roughly 15 years of replicating the S&P 500. FHLC was incepted on October 21, 2013, offering a track record of over 10 years focused on the MSCI US Investable Market Health Care 25/50 Index. Both funds have established long-term histories, which allows investors to observe how they behave across different market cycles. The longer track record of VOO provides more data points on its performance relative to the overall market, while FHLC's history covers a significant period of expansion in the healthcare sector.

Which investing goals are typically associated with FHLC versus VOO?

VOO is generally associated with goals related to long-term wealth accumulation and core portfolio construction, as it provides broad exposure to the US economy with low fees. FHLC is typically associated with investors seeking sector-specific exposure, perhaps to overweight healthcare in a portfolio or to bet on industry growth. It suits those who want to isolate the performance of healthcare companies from the rest of the market. Neither is inherently 'better'; the choice depends on whether an investor prioritises broad market stability and diversification (VOO) or targeted industry participation and potential yield differences (FHLC).

Is the data provided sufficient for making a final investment decision?

No, the provided data is educational and does not constitute financial advice. While it highlights key metrics like expense ratios, yields, and top holdings, it lacks full portfolio transparency, such as complete sector weights and index tracking methodologies, which are noted as 'not available' in the source data. Investors should consult official fund prospectuses and consider their own risk tolerance, time horizon, and financial situation before making any investment decisions. Comparing ETFs is a starting point for research, but a comprehensive analysis requires deeper investigation into the underlying holdings and how they fit within a broader asset allocation strategy.

FHLC vs VOO

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

Compare FHLC (Fidelity MSCI Health Care ETF) and VOO (S&P 500 Vanguard ETF). This page reviews their fees, holdings, dividends, and market tracking to help you understand the differences between these Fidelity and Vanguard funds. Educational content, not financial advice.

Compare FHLC (Fidelity MSCI Health Care ETF) and VOO (S&P 500 Vanguard ETF). This page reviews their fees, holdings, dividends, and market tracking to help you understand the differences between these...

Fund Snapshot

Key Fund Metrics

FHLC

Metric

VOO

0.08%

Expense Ratio

0.03%

1.24%

Dividend Yield

1.03%

$3.48B

Net Assets

$1.08T

349

Holdings

516

Oct 21, 2013

Inception Date

Sep 7, 2010

–

Index Tracked

–

Health

Fund Category

Large Blend

VOO costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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FHLC vs FTEC

Compare FHLC and FTEC ETFs. Analyze their identical 0.08% expense ratios, distinct top holdings like LLY and NVDA, dividend yields, and sector tracking.

Investment Analysis

FHLC

Pros

FHLC provides diversified exposure to the healthcare sector with a low expense ratio of 0.08% and $3.5 billion in assets.
The fund's moderate 1.24% dividend yield is supported by major holdings like UnitedHealth Group and Johnson & Johnson.
Incepted in 2013, FHLC has a ten-year track record, offering stability for investors seeking healthcare sector exposure.

Considerations

FHLC's index methodology is not available, limiting transparency on its tracking approach and benchmark alignment.
Healthcare sector concentration may result in higher volatility and limited diversification benefits.
Sector weights are not available, reducing insight into portfolio composition and potential sector risks.

VOO

Pros

VOO offers low-cost exposure to the S&P 500 with a 0.03% expense ratio and $1.08 trillion in assets.
With 500 holdings across large-cap US equities, VOO provides broad diversification and sector stability.
Incepted in 2010, VOO's fifteen-year track record reflects consistent replication of the S&P 500.

Considerations

VOO's top-ten holdings account for 32.6% of assets, creating concentration risk in mega-cap tech stocks.
The 1.03% dividend yield is lower than FHLC's, reducing income generation for yield-focused investors.
Market-cap weighting can lead to higher turnover and greater exposure to volatile tech stocks.

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About FHLC and VOO

FHLC (FHLC)

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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