Best Fidelity ETFs | Bankrate

Fidelity Investments is well-known for being an investor-friendly outfit, with low-cost and even no-cost mutual funds. But the company also has a range of about 50 exchange-traded funds (ETFs) that investors may want to consider adding to their portfolio.

While most of these ETFs are small or relatively new – fewer than half have been around more than five years – investors still have solid choices when it comes to picking an attractive fund.

Here are the best Fidelity ETFs that you might want to add to your portfolio.

Top Fidelity ETFs

The list below includes the top seven Fidelity ETFs by performance over the last five years. If a Fidelity fund has not existed for at least that long, it’s excluded from consideration.

(Note: Returns below are as of June 22, 2023.)

Fidelity MSCI Information Technology Index ETF (FTEC)

This ETF is focused on information technology and tracks the performance of the MSCI USA IMI Information Technology Index. The fund is classified as “large growth,” meaning that it holds large-cap stocks that are focused on growth. Top holdings include Apple, Microsoft and Nvidia.

  • Historical performance (annual over 5 years): 18.5 percent
  • Expense ratio: 0.084 percent

Fidelity Nasdaq Composite Index ETF (ONEQ)

This fund tracks the performance of the Nasdaq Composite Index, which includes more than 3,000 companies listed on the Nasdaq exchange. The fund is classified as “large growth,” meaning that its holdings are mainly large-cap stocks focused on growth. Top holdings include Apple, Microsoft and Amazon.

  • Historical performance (annual over 5 years): 12.9 percent
  • Expense ratio: 0.21 percent

Fidelity MSCI Consumer Staples Index ETF (FSTA)

This fund invests in consumer staples stocks and tracks the performance of the MSCI USA IMI Consumer Staples Index. It’s considered a “large blend” fund because it has large-caps that are both growth- and value-oriented. Top holdings include Procter & Gamble, PepsiCo and Coca-Cola.

  • Historical performance (annual over 5 years): 10.9 percent
  • Expense ratio: 0.084 percent

Fidelity Low Volatility Factor ETF (FDLO)

This ETF focuses on buying the stocks of large- and mid-cap companies that show lower volatility than the overall market. The fund is considered “large blend” and tracks the Fidelity U.S. Low Volatility Factor IndexSM. Top holdings include Microsoft, Alphabet and Apple.

  • Historical performance (annual over 5 years): 10.7 percent
  • Expense ratio: 0.29 percent

Fidelity MSCI Consumer Discretionary Index ETF (FDIS)

This ETF invests in consumer discretionary companies, those that typically satisfy “wants” rather than “needs,” and tracks the MSCI USA IMI Consumer Discretionary Index. This fund is classified as “large growth,” and top holdings include Amazon, Tesla and The Home Depot.

  • Historical performance (annual over 5 years): 10.7 percent
  • Expense ratio: 0.084 percent

Fidelity MSCI Health Care Index ETF (FHLC)

This fund is focused on health care stocks and tracks the performance of the MSCI USA IMI Health Care Index. This fund is classified as “large blend” because it owns large-cap companies that are growth-focused or value-priced. Top holdings include Johnson & Johnson, UnitedHealth and Eli Lilly.

  • Historical performance (annual over 5 years): 9.8 percent
  • Expense ratio: 0.084 percent

Fidelity Quality Factor ETF (FQAL)

This fund focuses on buying the stocks of large- and mid-cap companies that are considered higher quality than the overall market. The fund is considered “large blend,” meaning that it holds large companies that are growth-oriented or value-priced. It tracks the Fidelity U.S. Quality Factor IndexSM, and top holdings include Apple, Microsoft and Alphabet.

  • Historical performance (annual over 5 years): 9.8 percent
  • Expense ratio: 0.29 percent

Bottom line

These Fidelity ETFs all have attractive long-term returns and charge low expense ratios, making them a good fit for many investors. But you’ll want to research them further and compare them with other funds – such as the best small-cap ETFs – to see if they work best for your needs.

— Bankrate’s Brian Baker contributed to an update of this story.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

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