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Fidelity Investments is widely recognized for its investor-friendly approach, offering low-cost and even no-cost mutual funds. However, the company also offers a selection of approximately 70 exchange-traded funds (ETFs) that investors may find beneficial to include in their investment portfolios.
While many of these ETFs are relatively small or new to the market – with less than half having a track record of more than five years – investors still have solid options when it comes to choosing a promising fund.
Here are some of the top Fidelity ETFs that investors may want to consider adding to their portfolios.
Top Fidelity ETFs
Below is a list of the top seven Fidelity ETFs based on their performance over the past five years. ETFs that have not been in existence for at least five years are not included in this ranking.
(Please note: Performance data is accurate as of July 23, 2024.)
Fidelity MSCI Information Technology Index ETF (FTEC)
This ETF focuses on the information technology sector and tracks the performance of the MSCI USA IMI Information Technology Index. Classified as “large growth,” the fund primarily holds large-cap stocks that emphasize growth. Key holdings include Apple, Microsoft, and NVIDIA.
- Historical performance (annual over 5 years): 23.6 percent
- Expense ratio: 0.08 percent
Fidelity Enhanced Large Cap Growth ETF (FELG)
This fund concentrates its investments in the Russell 1000 Growth Index, which comprises large-cap growth stocks from the Russell 1000 Index. Top holdings in this fund include Apple, Microsoft, and NVIDIA.
- Historical performance (annual over 5 years): 19.6 percent
- Expense ratio: 0.18 percent
Fidelity Nasdaq Composite Index ETF (ONEQ)
This ETF tracks the performance of the Nasdaq Composite Index, which includes over 3,000 companies listed on the Nasdaq exchange. Categorized as “large growth,” the fund predominantly holds large-cap stocks focused on growth. Key holdings consist of Apple, Microsoft, and Nvidia.
- Historical performance (annual over 5 years): 18.5 percent
- Expense ratio: 0.21 percent
Fidelity Enhanced Large Cap Core ETF (FELC)
This ETF invests in stocks listed in the Standard & Poor’s 500 Index, which features the largest publicly traded American companies. The fund selects stocks based on growth, valuation, profitability, and other factors to construct a portfolio that may outperform the S&P 500.
- Historical performance (annual over 5 years): 15.8 percent
- Expense ratio: 0.18 percent
Fidelity Quality Factor ETF (FQAL)
This ETF aims to mirror the performance of the Fidelity U.S. Quality Factor Index, designed to mirror the performance of large and mid-cap U.S. companies with a higher quality profile compared to the broader market. Leading holdings include Microsoft, Nvidia, and Apple.
- Historical performance (annual over 5 years): 13.8 percent
- Expense ratio: 0.15 percent
Fidelity Momentum Factor ETF (FDMO)
This fund seeks to track the performance of a momentum-based index comprising large and mid-cap U.S. stocks that exhibit positive momentum signals. Key holdings include Microsoft, Nvidia, and Alphabet.
- Historical performance (annual over 5 years): 13.5 percent
- Expense ratio: 0.15 percent
Fidelity High Dividend ETF (FDVV)
This ETF aims to track the Fidelity High Dividend IndexSM, which includes large and mid-cap dividend-paying stocks expected to pay and increase their dividends. Top holdings consist of Microsoft, Apple, and Nvidia.
- Historical performance (annual over 5 years): 13.5 percent
- Expense ratio: 0.15 percent
Conclusion
These Fidelity ETFs have demonstrated strong long-term returns and come with low expense ratios, making them a potentially suitable choice for many investors. However, it is advisable to conduct further research and compare them with other funds, such as the best small-cap ETFs, to determine which options align best with your investment objectives.
Editorial Disclaimer: We recommend that all investors conduct their own independent research on investment strategies before making any investment decisions. Additionally, past performance of investment products does not guarantee future price appreciation.