FHLC vs HRTS

FHLCAFidelity MSCI Health Care Index ETF

HRTSDTema Heart & Health ETF

In short

FHLC Health care, whole market. FHLC tracks an MSCI index that runs from mega-cap pharma down to small-cap biotech and device makers, roughly 400 names, for 0.08% a year.

HRTS Broad health care funds own insurers, hospitals and dental supply. HRTS narrows to one battlefield: heart and metabolic disease, with at least 80% of assets in companies earning half their revenue there.

Stated mandate

FHLC The fund seeks to track the performance of the MSCI USA IMI Health Care Index before fees and expenses.

HRTS The Fund seeks long-term growth of capital and invests at least 80% of its assets in publicly listed companies deriving at least half of their revenue from cardiovascular- or metabolic-disease treatments.

Why people hold it

• FHLC Charges 0.08% a year against a 0.50% median for broad health care ETFs. Only XLV matches that sticker; VHT sits a hair above.
• The IMI index it follows reaches for about 99% of US free-float market value, so smaller biotech and device names ride along with the pharma giants.msci.com
• Mirrors its benchmark closely, one of the tighter tracking jobs among broad health care funds. Distributions come quarterly.
• Fidelity has run it since 2013, and it has grown into a multi-billion-dollar fund with a plain vanilla index mandate.fidelity.com

• HRTS Written into the prospectus: at least 80% of assets in companies drawing half or more of their revenue from cardiovascular or metabolic disease treatment. Theme drift has a floor.
• About 50 stocks picked by a manager rather than copied from an index, so the portfolio can follow the science instead of waiting on a benchmark reconstitution.
• Nothing exotic under the hood: a plain 1940 Act fund holding listed stocks. No leverage sleeve, no derivatives wrapper to decode.

Worth knowing

• FHLC One sector, one country. Drug-pricing politics, patent cliffs and FDA rulings move the whole portfolio at once.
• Free-float cap weighting means a handful of mega-cap insurers and drugmakers carry most of the weight; that long tail of small names counts for less than it looks.msci.com
• Moderately traded rather than the category's volume leader, so spreads matter more on large or hurried orders.

• HRTS 0.75% net of a waiver through June 28, 2027 (0.99% gross). That sits above the category median and well above broad peers like XLV at 0.08% or VHT at 0.09%.
• One of the thinner traders in its category and smaller by assets. Limit orders matter more here than with a mega sector fund.
• About 50 names in one disease niche: a single trial readout can move the whole portfolio. Concentration cuts both ways.

Full FHLC profile⁠

Full HRTS profile⁠