Fidelity Investments is recognized for its investor-friendly approach, offering low-cost and even no-cost mutual funds. In addition to this, the company provides a selection of approximately 75 exchange-traded funds (ETFs) that investors may want to consider for their portfolios. While many of these ETFs are relatively small or new to the market – with less than half having a track record of over five years – investors still have solid options to choose from when seeking attractive funds. Below are the top Fidelity ETFs that you may want to consider adding to your investment portfolio.
Top Fidelity ETFs
The following list showcases 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 considered in this evaluation. (Please note: Performance figures are accurate as of January 7, 2025.)
1. Fidelity MSCI Information Technology Index ETF (FTEC)
– Focuses on the information technology sector and mirrors the performance of the MSCI USA IMI Information Technology Index.
– Classified as “large growth” due to its holdings of large-cap stocks with a growth focus.
– Top holdings include Apple, Microsoft, and NVIDIA.
– Historical performance (annual over 5 years): 21.6%
– Expense ratio: 0.08%
2. Fidelity Enhanced Large Cap Growth ETF (FELG)
– Invests primarily in the Russell 1000 Growth Index, which includes large-cap growth stocks.
– Top holdings include Apple, Microsoft, and NVIDIA.
– Historical performance (annual over 5 years): 19.4%
– Expense ratio: 0.18%
3. Fidelity Nasdaq Composite Index ETF (ONEQ)
– Tracks the Nasdaq Composite Index, comprising over 3,000 companies listed on the Nasdaq exchange.
– Categorized as “large growth” with a focus on large-cap growth stocks.
– Top holdings include Apple, Microsoft, and Nvidia.
– Historical performance (annual over 5 years): 17.7%
– Expense ratio: 0.21%
4. Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
– Aims to replicate the performance of companies in the consumer discretionary sector.
– Top holdings include Amazon.com, Tesla, and The Home Depot.
– Historical performance (annual over 5 years): 15.8%
– Expense ratio: 0.08%
5. Fidelity Enhanced Large Cap Core ETF (FELC)
– Invests in stocks from the S&P 500 Index, selecting based on growth, valuation, and profitability.
– Strives to outperform the S&P 500.
– Historical performance (annual over 5 years): 15.4%
– Expense ratio: 0.18%
6. Fidelity Momentum Factor ETF (
Expense ratios are an important factor to consider when choosing investments, as they can significantly impact overall returns. Low expense ratios can make an investment more attractive to many investors due to lower costs cutting into their profits. It is essential to thoroughly research expense ratios and compare them with similar investment options to determine which would best suit individual financial goals and needs.
However, it is crucial to exercise caution and due diligence when evaluating investment options. Investors are strongly advised to conduct their independent research into investment strategies before making any decisions. While expense ratios are an essential aspect to consider, they are not the sole factor that should determine an investor’s choice. Other factors, such as historical performance and market conditions, should also be taken into account to make informed investment decisions.
Furthermore, past performance is not an indicator of future results. It is important for investors to understand that the performance of an investment product in the past does not guarantee future price appreciation. Market conditions, economic factors, and other variables can significantly impact the performance of an investment, making it vital for investors to approach investment decisions with a comprehensive understanding of the risks involved.
In conclusion, while expense ratios play a crucial role in investment decisions, they should be evaluated in conjunction with other factors to make well-informed choices. Conducting thorough research, comparing different investment options, and considering various aspects of investment products are all essential steps in building a successful investment portfolio. By approaching investment decisions with a critical eye and a comprehensive understanding of the market, investors can navigate the complexities of the financial world and make decisions that align with their financial goals and risk tolerance.
