Market Shares:

• Pharmaceuticals: approx. 45%
• Biotechnology: approx. 25%
• Health equipment and services: approx. 30%

Top 3 Markets:

• USA: approx. 65%
• Europe: approx. 20%
• Asia-Pacific: approx. 10%

The Fidelity MSCI Health Care Index ETF (FHLC) mainly invests in companies from the healthcare sector, with the largest share allocated to pharmaceuticals. These companies benefit from an aging population and increasing healthcare expenditures.

The USA is the dominant market for the ETF, attributed to the size and influence of the American healthcare sector. Europe and the Asia-Pacific region follow, with these markets also benefiting from growing healthcare needs.

Fidelity Covington Trust - Fidelity MSCI Health Care Index ETF (ARCA:FHLC) is an exchange-traded fund (ETF) and not a company that produces physical products.

This ETF invests in a variety of companies within the healthcare sector that operate in the USA and worldwide. The production of the products is done by the individual companies in which the ETF invests. These companies may have production facilities in different countries, depending on their individual business activities and global presence.

As it is an ETF, it is important to note that it does not own or operate any production facilities itself.

Current Strategy: Diversification and Cost Optimization
Focus on Innovation: Investments in Biotechnology and Digital Health Solutions
Market Expansion: Accessing New Geographic Markets

The Fidelity MSCI Health Care Index ETF pursues a strategy based on diversification and cost optimization to promote growth. The ETF invests in a broad range of healthcare companies to spread risk and benefit from various trends within the sector.

Another focus is on investing in innovative areas such as biotechnology and digital health solutions, which are considered growth drivers in the healthcare industry. These investments are intended not only to strengthen the portfolio but also to benefit from technological advancements and the increasing demand for modern healthcare solutions.

Additionally, the ETF plans to expand its presence in new geographic markets to benefit from global growth opportunities. This includes accessing markets with high growth potential, especially in emerging economies where access to healthcare services is increasingly being improved.

Commodities/Materials: Not applicable

The Fidelity MSCI Health Care Index ETF (ARCA:FHLC) is an exchange-traded fund that invests in stocks of companies in the healthcare sector. As a financial fund, it does not import any commodities or materials itself. Instead, the ETF invests in a variety of companies that may import commodities or materials.

Companies in the healthcare sector that the ETF invests in could import commodities such as pharmaceutical active ingredients, medical device components, or biotechnological materials. The countries of origin for these materials vary depending on the specific company and its supply chains. Common countries of origin for pharmaceutical active ingredients are China and India, while medical device components often come from the USA, Germany, or Japan.

For detailed information on the commodity imports of individual companies within the ETF, an analysis of the respective company reports would be necessary.

Current Net Asset Value (NAV): $60.25 (estimated for 2026)
Total Expense Ratio: 0.08% (latest available data)
Market Capitalization: $2.5 billion (estimated for 2026)

The Fidelity MSCI Health Care Index ETF (FHLC) provides investors with access to a broad range of companies in the healthcare sector. The ETF's competitive advantage lies in its broad diversification and low expense ratio of 0.08%, which is very competitive compared to other ETFs in the healthcare sector.

Another advantage is the strong performance of the healthcare sector, which benefits from an aging population and technological advancements. The ETF includes large, established companies that provide a stable earnings base, making it an attractive option for long-term investors.

The estimated market capitalization of $2.5 billion indicates that the ETF has reached a significant size, providing liquidity and stability for investors. Combined with the strategic focus on the healthcare sector, which is considered relatively crisis-resistant, the FHLC is well positioned in the competition.

Institutional Investor Share: 60% (estimated for 2026)

Insider Buys/Sells: No significant transactions reported (estimated for 2026)

The institutional investor share in ETFs such as the Fidelity MSCI Health Care Index ETF is usually high, as these funds are often held by institutional investors such as pension funds, insurance companies, and asset managers. An estimate of 60% is therefore realistic.

Insider buys and sells are less relevant for ETFs, as these funds do not represent individual company shares but rather a basket of stocks. Therefore, there are usually no significant insider transactions that would need to be reported.

Market share of FHLC: Estimated 5-7% (2026)

Main competitors and their market shares:

1. Vanguard Health Care ETF (VHT): 10-12%
2. iShares U.S. Healthcare ETF (IYH): 8-10%
3. Health Care Select Sector SPDR Fund (XLV): 15-18%
4. Invesco Dynamic Pharmaceuticals ETF (PJP): 4-6%
5. SPDR S&P Biotech ETF (XBI): 3-5%

The Fidelity MSCI Health Care Index ETF (FHLC) is a significant player in the healthcare ETF sector, but not the market leader. Its market share lags behind larger ETFs such as the Health Care Select Sector SPDR Fund (XLV) and the Vanguard Health Care ETF (VHT).

Compared to its competitors, FHLC's "economic moat" is moderate. The ETF offers broad diversification in the healthcare sector, making it attractive to investors seeking a balanced risk-return profile. However, some of the larger ETFs like XLV and VHT may have a potentially stronger economic moat due to their larger market shares and stronger brand presence.

Overall, FHLC does not have a significant advantage over the leading ETFs, as they often provide greater liquidity and lower expense ratios. Nevertheless, FHLC remains a solid choice for investors looking to pursue specific strategies in the healthcare sector.

Industry Growth: 5.8% CAGR (2023-2026, healthcare sector) Expense Ratio: 0.08% (2023) Asset Volume: $2.5 billion USD (2023)

The Fidelity MSCI Health Care Index ETF (FHLC) offers investors broad diversification in the healthcare sector, which has seen stable growth averaging 5.8% per year in recent years. The ETF has a low expense ratio of 0.08%, making it a cost-effective option for investors looking to invest in this sector.

With an asset volume of $2.5 billion USD, the ETF has reached a significant size, indicating broad acceptance among investors. Diversification across various companies in the healthcare sector reduces the specific risk of individual stocks and provides a stable return expectation.

Overall, the FHLC ETF is an attractive option for investors looking to benefit from the long-term growth prospects of the healthcare sector without exposing themselves to the risks of individual stocks.

Dividend Yield: 1.2% (estimated for 2026)

The Fidelity MSCI Health Care Index ETF (FHLC) regularly pays a dividend, typically distributed quarterly. The dividend yield typically ranges from 1% to 2%, depending on market conditions and the performance of the underlying index.

The reliability of the payout is relatively high as the ETF invests in a broad range of healthcare companies that tend to generate stable earnings. The healthcare sector is known for its resilience to economic fluctuations, which supports dividend stability.

However, it is important to note that dividend yields and payouts can vary depending on market conditions and company earnings. Investors should regularly review the ETF's current reports and payout announcements.