Healthcare Stocks Are Having a Good Year. Should You Buy a Fidelity or iShares ETF to Profit?

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Healthcare ETFs: Look Beyond the US Giants

FHLC beats IYH on fees, diversification, and long-term returns, but what about South African relevance?

Global healthcare has shown resilience this year, attracting cautious capital as defensive growth amid market jitters. Between two popular US healthcare ETFs—Fidelity’s FHLC and iShares’ IYH—the differences are subtle but meaningful. FHLC’s lower fees (0.08% versus 0.38%) and broader basket—over 300 stocks compared to around 100—translate into steadier, long-term outperformance. Names like Lilly, Johnson & Johnson, and AbbVie dominate both funds, signaling strong blue-chip exposure. Yet, for South African investors, these funds offer indirect benefits. The next tier of healthcare providers on the JSE are smaller and less diversified, so tapping into global healthcare through the rand is a way to hedge against local sector constraints. That said, a rising USD/ZAR ratio and rand volatility could erode returns, so timing matters. Keep in mind, if the rand strengthens sharply or local healthcare shares improve post-pandemic, a direct South African healthcare play might become more appealing. For now, FHLC’s cost advantage and diversification make it a smarter gateway into global healthcare trends. this is just our opinion and not financial advice