Thoughts on FHLC [Fidelity MSCI Health Care Index]

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katwillny
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Thoughts on FHLC [Fidelity MSCI Health Care Index]

Post by katwillny »

With all the renewed talks about healthcare reform and more importantly with the aging baby boomer generation I am thinking of investing a small percentage of my Roth IRA into this fund. I work in healthcare IT and I see how healthcare companies are changing processes to optimize earnings. The amount of money that goes into healthcare yearly is astronomical and its only going to go back.
Thoughts please.

Kat!!
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Re: Thoughts on FHLC

Post by Vanguard Fan 1367 »

My thoughts are that it might work out well. I like the low expense ratio of .084 %. Johnson and Johnson stock has been very good to my family and I notice that is the largest holding of FHLC.

After reading John Bogle I appreciate the simplicity of something like the Total Stock Market or the S & P 500 and just holding on to it. But I am sorry that I sold my Johnson and Johnson, I had those nasty capital gains taxes to pay and lost the nice annual dividend percentage.
John Bogle: "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it."
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LadyGeek
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Re: Thoughts on FHLC [Fidelity MSCI Health Care Index]

Post by LadyGeek »

This thread is now in the Investing - Help with Personal Investments forum (portfolio help). I also retitled the thread to help with the stock ticker.

Here's the fund info: FHLC | ETF Snapshot - Fidelity

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WhiteMaxima
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Re: Thoughts on FHLC [Fidelity MSCI Health Care Index]

Post by WhiteMaxima »

I would tilt toward healthcare. We are witness a revolution in health industry. Growing middle class in developing world, aging population, DNA mapping and target treatment. Estimated medical spending after retirement for a typical retiree is 1/4 million. I would invest that much into a low cost health ETF just as a downpayment for my future healthcare needs. We will need better healthcare more than social media, E commerce self-driving vehicle. Human life could surpass 100 years in my lifetime.
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Nate79
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Re: Thoughts on FHLC [Fidelity MSCI Health Care Index]

Post by Nate79 »

Sure, healthcare as an industry may do well in the future but who is to say they will outperform technology or financials, or any other industry sector? For example, would you bet on Johnson & Johnson (top holding of FHLC) or Apple (top holding of VTI)? Who knows.
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katwillny
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Re: Thoughts on FHLC [Fidelity MSCI Health Care Index]

Post by katwillny »

Nate79 wrote:Sure, healthcare as an industry may do well in the future but who is to say they will outperform technology or financials, or any other industry sector? For example, would you bet on Johnson & Johnson (top holding of FHLC) or Apple (top holding of VTI)? Who knows.
Great point and thanks for taking the time to reply. My plan is to invest a small portion of my overall portfolio < 5% and get some exposure to the sector and perhaps capitalize in all of the renewed talks about healthcare. In late 2012 on the advice of a dear friend who is no longer with us, I put approximately 10% of my ROTH holdings into the FBIOX in the $100s and rode it all the way up to $285 which did wonders to that particular account. But I do see your point about opportunity cost.
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