How do the expense ratios of FHLC and XLV compare, and what does that mean for costs?

Both FHLC and XLV have identical expense ratios of 0.08%. This means there is no current cost advantage for either fund. Since they are equal, investors will not pay more for one compared to the other. However, understanding fees is vital because even small differences can compound over time. In this case, the lack of difference simplifies cost comparison, but investors should still review other factors like size and yield.

What is the difference in fund size between FHLC and XLV?

XLV manages $43.5 billion in net assets, while FHLC manages $3.5 billion. This significant size difference often relates to trading liquidity and market impact. Larger funds may offer tighter bid-ask spreads during high-volume trading periods. FHLC is considerably smaller by comparison, though both remain substantial healthcare sector funds. Investors might consider size when assessing ease of entry and exit in the secondary market.

How old are these funds, and does inception date matter?

XLV was launched on 16 December 1998, whereas FHLC started on 21 October 2013. XLV therefore has a much longer operational history. A longer history can provide more data for analysing past performance and tracking error. FHLC is a younger fund but still has over a decade of history. The inception date highlights differences in track record length, but both funds have experienced multiple market cycles.

Do FHLC and XLV hold similar stocks in their portfolios?

Yes, the top ten holdings are identical for both funds. Both include Eli Lilly (LLY), Johnson & Johnson (JNJ), AbbVie (ABBV), Merck (MRK), and UnitedHealth (UNH). The order and weightings differ slightly, with XLV showing higher concentration in the top names. This heavy overlap suggests that both funds track very similar segments of the healthcare sector, offering comparable exposure to major US healthcare companies.

What are the dividend yields for these ETFs?

XLV offers a dividend yield of 1.51%, compared to FHLC's 1.24%. Both funds pay dividends derived from their underlying portfolio companies. The yield difference of 0.27 percentage points is modest but noticeable. Higher yields may appeal to income-focused investors, though the underlying health of the companies paying the dividends is also important. Both funds represent standard distribution mechanisms for sector ETFs.

How do the top holdings differ in weight between the two funds?

While both funds hold the same top ten stocks, XLV has higher weightings for the largest positions. For instance, LLY is 15.17% in XLV versus 12.86% in FHLC. This pattern repeats with JNJ and ABBV. FHLC appears slightly more diversified within its top ten by having lower concentration in the absolute largest names. These differences are minor and do not significantly change the overall sector exposure profile.

Which fund might be more liquid for trading?

XLV, with $43.5 billion in assets, is generally considered more liquid than FHLC, which has $3.5 billion. Larger assets under management typically correlate with higher daily trading volumes. This can make it easier to buy or sell XLV shares without affecting the price significantly. However, FHLC is still a substantial fund by Fidelity's standards and may offer sufficient liquidity for most retail investors. Institutional flows often concentrate in the larger XLV.

Do these funds track the same index?

The specific index tracked is listed as 'not available' in the provided fund data for both FHLC and XLV. However, their near-identical top holdings and sector focus suggest they both target the US large-cap healthcare sector. Differences in index construction or weightings might explain the slight variations in stock weights and total holdings. Without the specific index names, we rely on the observed portfolio composition to infer similar market exposure.

How do ETFs distribute dividends to investors?

ETFs like FHLC and XLV collect dividends from their underlying holdings, such as LLY and JNJ. They then distribute these earnings to shareholders periodically, usually quarterly. The dividend yield shown (1.24% for FHLC and 1.51% for XLV) represents the annualised income relative to the share price. Investors receive cash payments unless they select a dividend reinvestment plan. The yield is determined by the payout behaviour of the companies within the fund's portfolio.

Are there any other fees besides the expense ratio?

The expense ratio of 0.08% is the primary ongoing annual fee for both funds. However, investors may also incur transaction costs such as brokerage commissions or bid-ask spreads when buying and selling shares. These costs are not part of the expense ratio and vary by broker. Since both funds have equal expense ratios, trading costs and liquidity (asset size) become more relevant factors for overall cost efficiency during execution.

FHLC vs XLV

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

Compare FHLC and XLV side by side. This page reviews the fees, holdings, dividends and index focus of the Fidelity MSCI Health Care ETF versus the Health Care Select Sector SPDR. Educational content, not financial advice.

Compare FHLC and XLV side by side. This page reviews the fees, holdings, dividends and index focus of the Fidelity MSCI Health Care ETF versus the Health Care Select Sector SPDR. Educational content, ...

Fund Snapshot

Key Fund Metrics

FHLC

Metric

XLV

0.08%

Expense Ratio

0.08%

1.24%

Dividend Yield

1.51%

$3.48B

Net Assets

$43.50B

349

Holdings

64

Oct 21, 2013

Inception Date

Dec 16, 1998

–

Index Tracked

–

Health

Fund Category

Health

Both funds charge the same annual fee.

Shared Top Holdings

Holding	FHLC	XLV
LLYEli Lilly and Company	12.86%	15.17%
JNJJohnson & Johnson	9.07%	10.57%
ABBVAbbVie Inc.	6.50%	7.61%
MRKMerck & Co., Inc.	5.07%	6.00%
UNHUnitedHealth Group Incorporated	4.75%	5.52%
TMOThermo Fisher Scientific Inc.	3.41%	3.96%
AMGNAmgen Inc.	2.86%	3.46%
GILDGilead Sciences, Inc.	2.61%	3.04%
ABTAbbott Laboratories	2.48%	2.90%
PFEPfizer Inc.	2.20%	2.57%

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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

Fidelity charges a low 0.08% expense ratio for this healthcare fund.
It maintains a moderate 1.24% dividend yield for income-focused investors.
The portfolio offers broad exposure through its established inception date.

Considerations

Its 3.5 billion net assets are smaller than larger sector competitors.
The tracked index information is currently not available in fund data.
Dividend yield is lower than the sector's larger capitalisation peers.

XLV

Pros

It holds 43.5 billion in net assets, indicating high liquidity.
The fund provides a 1.51% dividend yield for income generation.
It has a long history since its inception in December 1998.

Considerations

The 0.08% expense ratio is equal to many cheaper alternatives.
The tracked index details remain not available for specific methodology review.
Top holdings show heavy concentration in major pharmaceutical companies.

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About FHLC and XLV

FHLC (FHLC)

XLV (XLV)

Health Care Select Sector SPDR (XLV) is an exchange‑traded fund that provides diversified exposure to large-cap US health‑care companies across pharmaceuticals, biotechnology, medical devices, health‑care providers and insurers. It trades like a stock, offering a simple way to gain sector-specific exposure without selecting individual companies. Investors should note sector concentration risk — performance is tied to regulatory decisions, patent cycles, drug approvals and healthcare spending trends. XLV typically offers broad, liquid exposure and may distribute dividends, but yields and performance fluctuate. Fees for passive sector ETFs are generally low compared with active funds, though expenses reduce long‑term returns. Suitable for investors seeking targeted allocation to the health‑care sector within a diversified portfolio, XLV is not a substitute for personalised advice. This is general educational information only — values can fall as well as rise and past performance is not a reliable indicator of future results.

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