
Investing in the stock market can be overwhelming, especially for beginners. Fidelity offers a range of ETFs that can help construct a well-rounded investment portfolio.
Fidelity's ETFs are designed to track various market indices, sectors, and asset classes. This allows investors to gain broad diversification with a single investment.
One of the key benefits of Fidelity's ETFs is their low cost. Many of their ETFs have expense ratios of less than 0.1%, making them an attractive option for cost-conscious investors.
By investing in a mix of Fidelity's ETFs, investors can gain exposure to different asset classes and sectors, reducing their overall risk.
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Through Core Building Blocks
Fidelity active equity ETFs can be used as core positions for client portfolios that deliver the opportunity for outperformance with disciplined, ongoing risk management.
An industry-leading active management team supports Fidelity active equity ETFs, dedicated to generating new market insights and seeking excess returns.
Fidelity active equity ETFs offer the chance to gain equity exposure through these core building blocks.
The active management team is committed to disciplined, ongoing risk management, which is essential for outperformance in client portfolios.
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Gain Equity Exposure
Fidelity active equity ETFs can be used as core positions for client portfolios that deliver the opportunity for outperformance with disciplined, ongoing risk management.
They can provide a foundation for your investment portfolio, allowing you to build on your equity exposure with confidence.
These ETFs are designed to deliver the opportunity for outperformance, making them a great choice for clients who want to grow their wealth over time.
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Investment Options
Fidelity offers a variety of investment options to suit different needs and goals. You can mix and match Fidelity index funds and ETFs to create a great portfolio.
Fidelity has over 20 index funds with no minimum investment requirement, and all ETF trades are commission-free when placed online. This flexibility makes it easy to customize your investment strategy.
You can invest in US broad stock markets with Fidelity's Total Market Index Fund (FSKAX) or Fidelity ZERO Total Market Index Fund (FZROX), both of which have low expense ratios. Alternatively, you can choose from Vanguard Total Stock Market ETF (VTI) or iShares Core S&P Total U.S. Stock Market ETF (ITOT), both with an expense ratio of 0.03%.
Here's a breakdown of Fidelity's ETF product spectrum:
Mix Your Own Index Funds
You can create your own mix of index funds and ETFs with Fidelity, offering flexibility and customization. Fidelity offers more than 20 Fidelity-branded index funds with no minimum investment requirement.
One of the benefits of using Fidelity index funds is that they charge no commission on trades placed online. Fidelity also offers a wide range of ETFs with no commission on online trades. You can choose from a variety of ETFs, including the Fidelity Digital Health UCITS ETF ACC-USD and the Fidelity Clean Energy UCITS ETF ACC-USD.
Here are some popular Fidelity ETFs to consider:
You can also mix and match between Fidelity index funds and ETFs to create a portfolio that suits your needs. Fidelity has an index fund, the Fidelity Total Market Index Fund (FSKAX), with an expense ratio of only 0.015%.
US Small Stocks
If you're looking to invest in US small stocks, you've got several options to consider. Fidelity offers the Fidelity Small Cap Index Fund (FSSNX) with an expense ratio of 0.025%.
One of the benefits of Fidelity's Small Cap Index Fund is its low expense ratio. For comparison, other popular ETFs in this space have higher expense ratios, such as the iShares Core S&P Small-Cap ETF (IJR) with a 0.07% expense ratio.
If you're looking for an ETF alternative, consider the Vanguard Small-Cap ETF (VB) with a 0.05% expense ratio. Alternatively, the Schwab US Small-Cap ETF (SCHA) has an even lower expense ratio of 0.04%.
Here are some popular ETF options for US small cap stocks:
If you're interested in US small cap value stocks, Fidelity offers the Fidelity Small Cap Value Index Fund (FISVX) with an expense ratio of 0.05%.
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Product Spectrum
Fidelity offers a diverse range of ETFs, with a total of 34 options across various categories.
Fidelity's ETF product spectrum includes equity, bonds, and cryptocurrencies. In fact, they have 1 cryptocurrency ETF option.
The equity category has 21 ETFs, while the bonds category has 12. Precious metals, commodities, real estate, money market, and short&leveraged categories have no ETFs offered by Fidelity.
Here's a breakdown of Fidelity's ETF product spectrum:
ETFs and Investments
Fidelity offers a wide range of active ETFs that can be a great option for clients and advisors.
Investing in Fidelity's active fixed income ETFs can help meet your clients' needs, as they provide a robust lineup of options.
Investing involves risk, including risk of loss, so it's essential to be aware of the potential downsides.
Past performance is no guarantee of future results, so it's crucial to have a solid understanding of the market before making any investment decisions.
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Financial Investments
Fidelity has 76 ETFs with a total of 111.1B in assets under management, making it the 9th biggest ETF provider on the U.S. stock market.
The average expense ratio of Fidelity's ETFs is 0.31%. This is a relatively low cost compared to other investment options.
You can invest in a wide range of Fidelity Exchange-Traded Funds, which offer a variety of advantages for clients and advisors.
Fidelity offers a robust lineup of active ETFs, including active fixed income ETFs, which can help meet your clients' needs.
Investing involves risk, including risk of loss, so it's essential to understand the potential risks before investing.
Fidelity charges no commission on all ETFs if you place the trades online, making it a cost-effective option.
You can choose from Fidelity-branded index funds, which have no minimum investment requirement, or ETFs, which can be slightly more tax efficient outside of retirement accounts.
Fidelity Total Market Index Fund (FSKAX) has an expense ratio of only 0.015%, while Fidelity ZERO Total Market Index Fund (FZROX) has a 0% expense ratio.
Alternatively, you can consider Vanguard Total Stock Market ETF (VTI) or iShares Core S&P Total U.S. Stock Market ETF (ITOT), both of which have an expense ratio of 0.03%.
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International Stock Market
If you're looking to invest in international stock markets, you have several options to consider.
Fidelity's Fidelity Total International Index Fund (FTIHX) is a well-rounded fund that includes both developed and emerging markets and international small-caps.
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Its expense ratio is a low 0.06%, making it a cost-effective choice. Fidelity also offers a newer Fidelity ZERO International Index Fund (FZILX) with 0% expense ratio, although it doesn’t cover international small-caps.
For ETFs, Vanguard Total International Stock ETF (VXUS) and iShares Core MSCI Total International Stock ETF (IXUS) both cover the same broad international stock markets with an expense ratio of 0.09%.
You can also consider investing in emerging markets through Fidelity's Fidelity Emerging Markets Index Fund (FPADX) with a 0.08% expense ratio.
Other options include Vanguard FTSE Emerging Markets ETF (VWO) with an expense ratio of 0.12%, iShares Core MSCI Emerging Markets ETF (IEMG) with an expense ratio of 0.14%, and SPDR Portfolio Emerging Markets ETF (SPEM) with an expense ratio of 0.11%.
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US Fixed Income
US Fixed Income is a vital part of a diversified investment portfolio. Fidelity offers the Fidelity U.S. Bond Index Fund (FXNAX) with an expense ratio of 0.025%, tracking the broad U.S. bond market.
The Vanguard Total Bond Market ETF (BND) is another option, with an expense ratio of 0.035%. This ETF is a popular choice among investors.
For inflation-protected bonds, Fidelity's Fidelity Inflation-Protected Bond Index Fund (FIPDX) has an expense ratio of 0.05%. Schwab's U.S. TIPS ETF (SCHP) is also a good choice, with the same expense ratio of 0.05%.
Frequently Asked Questions
What is Fidelity's best ETF fund?
Fidelity's ETF funds cater to various investment goals, but the Fidelity Blue Chip Value ETF (FBCV) is a popular choice for long-term growth and high-cap investing. Consider this fund for a solid foundation in your investment portfolio.
Which Fidelity funds outperform the S&P 500?
The Fidelity Contrafund has consistently outperformed the S&P 500 Index, with a 2.77% annual advantage over the past 34 years. This fund has delivered impressive returns, growing a $10,000 investment to $836,642 by September 2024.
What is the largest Fidelity ETF?
The largest Fidelity ETF is the Fidelity Total Bond ETF (FBND), with over $10.97 billion in assets. This ETF offers a large and diversified investment opportunity for those seeking fixed income exposure.
Sources
- https://get.ycharts.com/resources/blog/the-10-best-performing-etfs-in-the-last-10-years-ycharts-analysis/
- https://institutional.fidelity.com/advisors/investment-solutions/asset-classes/domestic-equity/active-equity-etfs
- https://stockanalysis.com/etf/provider/fidelity/
- https://thefinancebuff.com/best-index-funds-and-etfs-at-fidelity.html
- https://www.justetf.com/en/etf-provider/fidelity-etfs.html
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