Does Fidelity or iShares Have the Better Healthcare ETF For Investors Seeking Broad Exposure?

The iShares Global Healthcare ETF (NYSEMKT:IXJ) offers worldwide exposure at a higher cost, while Fidelity MSCI Health Care Index ETF (NYSEMKT:FHLC) provides a low-cost, U.S.-centric play on the healthcare sector.

Investors looking for stability often turn to healthcare for its defensive qualities. Both funds offer broad exposure to pharmaceutical, biotech, and medical device companies. However, the choice between them involves weighing geographic reach against the drag of management fees and recent performance trends.

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on Sept. 10, 2026.

Fidelity MSCI Health Care Index ETF is significantly more affordable with an expense ratio of 0.08%. The iShares Global Healthcare ETF charges 0.38%, though it offers a slightly higher payout for income-seeking investors.

Growth of $1,000 over 5 years (total return)

The iShares Global Healthcare ETF provides broad access to healthcare equities worldwide. Its sector exposure is dominated by healthcare at 99%, with technology at 1%. Its largest positions include Eli Lilly & Co (NYSE:LLY) at 10%, Johnson & Johnson (NYSE:JNJ) at 7.%, and Abbvie (NYSE:ABBV) at 4.9%. The fund holds 110 stocks and was launched in 2001. iShares Global Healthcare ETF has paid $1.44 per share over the trailing 12 months, which on its recent ~$100.9 share price works out to a 1.4% yield.

Fidelity MSCI Health Care Index ETF tracks the MSCI USA IMI Health Care Index, resulting in a heavier focus on domestic markets. Similar to its peer, it allocates more than 99% to healthcare and less than 1% to financial services. Its top holdings include Eli Lilly & Co at 12.8%, Johnson & Johnson at 8.8%, and AbbVie at 6.2%. It is more diversified by count with 343 holdings and was launched in 2013. Fidelity MSCI Health Care Index ETF has paid $1.02 per share over the trailing 12 months, which on its recent ~$80.5 share price works out to a 1.3% yield.