FXH tracks a quant-driven index that attempts to achieve excess returns by selecting health care stocks based on growth and value factors, and equal-weighting them in tiers. The portfolio offers noteworthy mid-cap exposure, downplaying familiar large-cap names relative to cap-weighted peer funds. Additionally, FXH underweights pharmaceuticals relative to the market, but allows a significant exposure to biotechnology and healthcare providers. Overall, this fund offers a smart beta approach to the US health care space, tilting away from big pharma and towards other facets of health care. The index is reconstituted and rebalanced on a quarterly basis.