FHLC vs PINK

FHLCAFidelity MSCI Health Care Index ETF

PINKCSimplify Health Care 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.

PINK Most big health care ETFs just buy the index and sit still. PINK is a stock picker: roughly 60 U.S. names chosen bottom-up, multi-cap, growth-leaning, with room to back companies developing new medicines or cutting system costs.

Stated mandate

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

PINK PINK seeks long-term capital appreciation through U.S. health care companies, using a multi-cap, fundamental bottom-up approach. It generally follows a growth strategy and may emphasize companies developing medicines or improving health-care-system cost or quality.

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

• PINK Active by design: about 60 U.S. health care names picked bottom-up, not several hundred sorted by market cap. Concentration cuts both ways, but each pick actually matters here.
• Measured against an all-cap health care benchmark, so small and mid caps are in play, not just the megacap pharma that dominates S&P 500 based sector funds like XLV and RSPH.
• Charges 0.51%, right at the category median, which is unusual pricing for a hand-picked portfolio rather than an index feed.
• Sits in the upper half of the broad health care sector group on our review, and pays out quarterly.

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.

• PINK The category's index heavyweights (VHT, FHLC, XLV) charge under a tenth of a percent. PINK's fee is roughly six times that, and it buys the manager's judgment.
• No index to hug. Holdings come from a manager's calls, so the fund can sit far from the health care benchmark in either direction.
• One sector, one country, about 60 holdings, growth lean. Trial results and health policy headlines land with full force here.

Full FHLC profile⁠

Full PINK profile⁠