Buying an exchange-traded fund, or ETF, can give you exposure to numerous stocks under one ticker and can streamline your investing strategy. Instead of researching multiple companies and reading earnings reports, you only have to do research on a few ETFs. Seeking out low expense ratios, high annualized returns and sturdy portfolios can increase the likelihood of generating positive long-term returns.
Fidelity ETFs are among the best in the industry. The brokerage firm launched its first ETF in 2003 and now offers dozens of them. Fidelity ETFs track a wide range of sectors and industries. You can find ETFs that target growth stocks, fixed income, real estate and other investments among its diverse selections.
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Fidelity ETFs tend to deliver solid returns while charging low fees. Investors who want to grow their portfolios while saving plenty of time may want to consider these top Fidelity ETFs to buy:
| Fidelity ETF | Expense Ratio | % of Assets in Top 10 Holdings |
| Fidelity Blue Chip Growth ETF (ticker: FBCG) | 0.59% | 63% |
| Fidelity Fundamental Large Cap Core ETF (FFLC) | 0.38% | 38% |
| Fidelity Nasdaq Composite Index ETF (ONEQ) | 0.21% | 58% |
| Fidelity Enhanced Large Cap Growth ETF (FELG) | 0.18% | 60% |
| Fidelity MSCI Information Technology Index ETF (FTEC) | 0.084% | 59% |
| Fidelity High Dividend ETF (FDVV) | 0.15% | 31% |
| Fidelity Disruptive Finance ETF (FDFF) | 0.50% | 45% |
Fidelity Blue Chip Growth ETF (FBCG)
The Fidelity Blue Chip Growth ETF gives investors exposure to more than 200 large growth stocks. The actively managed fund allocates at least 80% of its assets to blue-chip companies and is filled with tech giants.
The top five holdings are all Magnificent Seven stocks, with Nvidia Corp. (NVDA), Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) making up nearly 34% of the fund’s total assets. The top-heavy fund has 63% of assets allocated to its top 10 holdings.
Blue-chip stocks can deliver respectable returns during bullish markets, but their proven business models are also more likely to withstand bearish markets. Companies like Apple and Amazon aren’t likely to go out of business during the next recession. Blue-chip stocks cater to investors who want to buy and hold for the long run without having much to worry about.
FBCG has a 0.59% net expense ratio and has delivered an annualized 8.1% total return over the past three years by net asset value. The fund has $2.4 billion in assets under management.
Fidelity Fundamental Large Cap Core ETF (FFLC)
The Fidelity Fundamental Large Cap Core ETF has a similar concept to that of Fidelity Blue Chip Growth ETF. Both Fidelity ETFs hold numerous large-cap stocks. However, FFLC isn’t as top-heavy, with its top 10 holdings making up 37.7% of the fund’s total assets.
FFLC has six Magnificent Seven stocks in its top 10 holdings. However, it also counts Exxon Mobil Corp. (XOM), Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC) among its largest positions. Both funds have Eli Lilly & Co. (LLY) as a top 10 holding. More than a quarter of the fund’s total assets are allocated across the information technology sector.
FFLC has $531.8 million in total assets and a 0.38% expense ratio. The fund’s 1.2% 30-day SEC yield indicates that you’ll receive a modest regular distribution just for holding on to your shares. FFLC has achieved a solid annualized return of 17.1% over the past three years.
Fidelity Nasdaq Composite Index ETF (ONEQ)
The Fidelity Nasdaq Composite Index ETF is the fund that started it all. ONEQ was the first Fidelity ETF, and it’s been generating solid returns to this day. ONEQ has an annualized 18.6% return over the past five years and an annualized 16.3% return over the past decade.
ONEQ mirrors the Nasdaq Composite Index, with at least 80% of its assets in common stocks included in the index. Therefore, it’s not a surprise to see Magnificent Seven stocks dominating the list of equities. Apple, Microsoft Corp. (MSFT) and Nvidia each represent more than 10% of the fund’s total holdings, and more than half of all assets are invested in the information technology sector as of Oct. 25, a higher percentage than the category average.
The Fidelity Nasdaq Composite Index ETF has a 0.21% expense ratio and a 0.7% 30-day SEC yield. It has $7 billion in assets. The Nasdaq Composite has been a good benchmark to follow lately, having outperformed the S&P 500 year to date and over the past five years.
Fidelity Enhanced Large Cap Growth ETF (FELG)
The Fidelity Enhanced Large Cap Growth ETF has a 0.18% expense ratio and $2.9 billion in total assets. About 53% of the fund’s assets are allocated to the technology sector, with a strong emphasis on semiconductor and software stocks.
Roughly two-thirds of the fund’s assets are in mega-cap stocks, with the Magnificent Seven in the spotlight. Apple, Nvidia and Microsoft each make up more than 10% of the fund. This top-heavy ETF has allocated 60% of its total capital to its top 10 holdings.
Pouring capital into Mag 7 stocks has worked out well for this Fidelity ETF and many other funds. FELG has an annualized 20% return over the past five years. The fund also has an impressive annualized return of 16.1% over the past 15 years.
Fidelity MSCI Information Technology Index ETF (FTEC)
The Fidelity MSCI Information Technology Index ETF aims to mirror the MSCI USA IMI Information Technology Index. FTEC has been a top-performing Fidelity ETF, with a 51.2% return over the past year. Shares have also achieved an annualized return of 23% over the past five years and a stunning 20.8% average annual return over the past decade.
Unsurprisingly, you don’t have to look far into the top 10 holdings to find Mag 7 stocks. Apple, Nvidia and Microsoft make up roughly 44% of the fund’s total assets. However, it is almost a shock to see that these are the only Mag 7 stocks in the top 10 holdings. Broadcom Inc. (AVGO), Oracle Corp. (ORCL), Salesforce Inc. (CRM), Advanced Micro Devices Inc. (AMD), Adobe Inc. (ADBE), Accenture PLC (ACN) and Cisco Systems Inc. (CSCO) round out the top 10 holdings, which make up 59% of the fund.
FTEC has a low 0.084% expense ratio and a 30-day SEC yield of 0.5%. It has $12.5 billion in total assets and dedicates nearly its entire portfolio to the information technology sector.
Fidelity High Dividend ETF (FDVV)
The Fidelity High Dividend ETF is a passively managed fund that aims to mirror the performance of the Fidelity High Dividend Index. Some dividend-paying Mag 7 stocks are in the fund’s top 10 holdings, but so are Procter & Gamble Co. (PG), NextEra Energy Inc. (NEE) and GE Aerospace (GE), differentiating the fund from other ETFs on this list.
FDVV has a 0.15% expense ratio and $3.9 billion in total assets. The fund has achieved an annualized 14.6% return over the past five years.
This fund is more spread out than most Fidelity ETFs. Only 31% of total assets are allocated to the top 10 positions, with no holding making up more than 7% of the fund’s total assets.
FDVV has 26.1% of its assets in the tech sector, with industrials (15.4%), consumer staples (11.2%) and utilities (10.8%) also having a strong influence on fund returns.
Fidelity Disruptive Finance ETF (FDFF)
The Fidelity Disruptive Finance ETF is an actively managed fund that allocates at least 80% of its capital to disruptive finance companies. The fund has a 0.5% expense ratio and a 0.8% 30-day SEC yield.
FDFF’s shares have been volatile since the fund’s inception in spring 2020. That left the ETF with an annualized NAV return of 0.7% over the past three years. However, this ETF has also soared by 49.6% over the past year.
Other than BlackRock, the Fidelity Securities Lending Cash Central Fund is the largest position, making up nearly 6% of the fund’s total assets. The next top positions are Apollo Global Management Inc. (APO), Mastercard Inc. (MA) and Visa Inc. (V), each with a 5.3% allocation. So it’s no surprise that the financials sector has heavy representation, making up 66% of the fund. Technology (26.4%), industrial (4.8%), real estate (1%) and consumer discretionary (1%) stocks also take chunks of this unique ETF.
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7 Best Fidelity ETFs to Buy Now originally appeared on usnews.com
