FHLC vs PTH

FHLCAFidelity MSCI Health Care Index ETF

PTHCInvesco Dorsey Wright Healthcare Momentum 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.

PTH Health care ranked by price strength instead of market cap. PTH's index has been running since 2006, holds about 50 relative-strength names, and reshuffles them every quarter, so the lineup can look nothing like the sector's megacap giants.

Stated mandate

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

PTH The Fund seeks to track the performance of its underlying index before fees and expenses. The index selects healthcare companies exhibiting relative strength or momentum.

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

• PTH The momentum screen draws from a broad US healthcare universe, so the names that qualify can be anything from megacaps to small caps. A genuinely different portfolio than cap-weighted sector funds like XLV and VHT.invesco.comnasdaq.com
• Live since October 2006, through multiple biotech booms and busts, well before momentum became a standard ETF label.
• Discipline is built into the calendar: the index is reconstituted and rebalanced quarterly, and the fund normally keeps at least 90% of total assets in index securities.nasdaq.comnasdaq.com 2

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.

• PTH 0.60% net of a waiver through August 31, 2028 (0.74% gross), above the category median and far above cap-weighted peers like XLV at 0.08% and VHT at 0.09%.
• With about 50 holdings and momentum setting the lineup, single-name moves land harder here than in a several-hundred-stock cap-weighted health care fund.
• Momentum, by design, buys what has already run and trims what has lagged, so sharp reversals can catch the index between quarterly rebalances.nasdaq.comnasdaq.com 2

Full FHLC profile⁠

Full PTH profile⁠