FHLC vs RSPH

FHLCAFidelity MSCI Health Care Index ETF

RSPHBInvesco S&P 500 Equal Weight 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.

RSPH Health care without the mega-cap gravity: RSPH gives every health care name in the S&P 500 the same slice, so no single drug giant steers the fund. It has been running that way since 2006.

Stated mandate

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

RSPH The Fund seeks to track the investment results of the S&P 500 Equal Weight Health Care Index.

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

• RSPH Equal weighting by design: about 60 S&P 500 health care names, each with the same slice, so one blockbuster drugmaker doesn't set the tone for the basket.
• Charges 0.40% a year, below the 0.50% typical of broad health care ETFs.
• Live since 2006, through drug-pricing fights, patent cliffs and a pandemic, and rated one of the stronger builds in its health care peer group.
• Spread is the point: the portfolio is one of the best-diversified in the cohort, with weight split across the sector rather than parked in a few giants.

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.

• RSPH The big cap-weighted rivals cost far less: XLV and FHLC charge 0.08%, VHT 0.09%. You're paying up for the equal-weight tilt.
• Equal weight leans toward the sector's smaller members, so results can drift from cap-weighted health care funds in either direction.
• One sector, one set of risks: policy shifts, pricing rules and patent cycles move the whole basket at once.

Full FHLC profile⁠

Full RSPH profile⁠