FHLC vs LGHT

FHLCAFidelity MSCI Health Care Index ETF

LGHTFLangar Global HealthTech 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.

LGHT A concentrated bet on the machines and software behind modern medicine: actively managed, global in reach, and pointed at healthcare technology rather than the pharma-heavy sector index everyone else owns.

Stated mandate

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

LGHT The Fund seeks long-term growth of capital. It is actively managed and invests at least 80% of assets in exchange-listed healthcare-technology equities and ADRs, principally in the United States and certain developed countries.

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

• LGHT Narrow by design: at least 80% of assets sit in exchange-listed healthcare-technology stocks and ADRs, not the whole drugmakers-and-insurers sector.
• Casts wider than the typical health-care sector fund: US plus developed international names, reachable directly or through ADRs.
• Actively managed toward long-term growth of capital, so the manager can rotate holdings as the field shifts instead of waiting on an index reconstitution.

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.

• LGHT Charges 0.85% a year, a multiple of what the broad health-care index heavyweights in its peer group (VHT, XLV, FHLC) charge.
• Small and thinly traded, so bid-ask spreads and order size carry more weight here than in a mega-fund.
• A 2024 launch built for capital growth, not income: short operating history and no record of regular distributions.

Full FHLC profile⁠

Full LGHT profile⁠