Fidelity ETFs offer investors a compelling avenue to access diverse market segments and investment strategies with remarkable efficiency and cost-effectiveness. As we look ahead to 2025, identifying the Fidelity ETFs poised for potential growth is paramount for building a robust and forward-looking investment portfolio. Whether you’re seeking to capitalize on the dynamic advancements in the tech sector, harness the power of consumer spending, tap into burgeoning international markets, or generate a steady stream of dividend income, Fidelity provides a wide spectrum of ETFs designed to align with your specific financial objectives.
Beyond their low expense ratios and diversification benefits, Fidelity ETFs also offer the flexibility of trading like stocks, making them an attractive option for both seasoned investors and those just beginning their investment journey. This article highlights some of the best Fidelity ETFs to keep a close eye on in 2025.
Best Fidelity ETFs to Buy in 2025
Below, we’ll examine a selection of popular and well-regarded Fidelity ETFs, highlighting their key characteristics to help you make informed investment decisions. We will consider factors such as expense ratios, top holdings, and reasons to consider each ETF.
ETF Name | Symbol | Issuer | Inception Date | Expense Ratio |
Fidelity High Dividend ETF | FDVV | Fidelity | Sep 12, 2016 | 0.15% |
Fidelity Nasdaq Composite Index ETF | ONEQ | Fidelity | Sep 25, 2003 | 0.21% |
Fidelity MSCI Information Technology ETF | FTEC | Fidelity | Oct 21, 2013 | 0.08% |
Fidelity Blue Chip Growth ETF | FBCG | Fidelity | Jun 03, 2020 | 0.59% |
1. Fidelity High Dividend ETF (FDVV)
- Expense Ratio: 0.15%
- Top Holdings: Broadcom Inc., Exxon Mobil Corp, JPMorgan Chase & Co., Apple Inc., Microsoft Corp.
- Why Consider It? FDVV focuses on large and mid-cap U.S. stocks that are expected to pay high dividends and have sustainable dividend growth potential. In an environment where income generation might be prioritized, or as a potential hedge against volatility, FDVV offers exposure to established companies distributing profits back to shareholders. Its diversified approach across sectors adds another layer of appeal.
2. Fidelity Nasdaq Composite Index ETF (ONEQ)
- Expense Ratio: 0.21%
- Top Holdings: Apple Inc., Microsoft Corp., NVIDIA Corp., Amazon.com, Inc., Meta Platforms Inc.
- Why Consider It? ONEQ provides broad exposure to the Nasdaq Composite Index, which includes over 2,500 securities listed on the Nasdaq stock market. While heavily weighted towards technology, it also includes companies from consumer services, healthcare, and financials. It’s a way to capture the performance of a wide swath of innovative and growth-oriented companies beyond just the Nasdaq-100.
3. Fidelity MSCI Information Technology ETF (FTEC)
- Expense Ratio: 0.08%
- Top Holdings: Apple Inc, Microsoft Corp., NVIDIA Corp.
- Why Consider It? For investors seeking concentrated exposure to the powerhouse U.S. information technology sector, FTEC is a compelling, low-cost option. It tracks the MSCI USA IMI Information Technology Index, providing access to companies driving innovation in software, hardware, semiconductors, and IT services. Given the continued importance of technology trends like AI, cloud computing, and cybersecurity, FTEC remains relevant for growth-focused investors.
4. Fidelity Blue Chip Growth ETF (FBCG)
- Expense Ratio: 0.59%
- Top Holdings: Microsoft Corp., Apple Inc., NVIDIA Corp., Amazon.com, Inc., Meta Platforms Inc.
- Why Consider It? FBCG is an actively managed ETF that invests in large-cap companies believed to have above-average growth potential. Unlike index ETFs, its managers select stocks based on factors like industry position, management quality, and earnings growth prospects. For investors seeking exposure to well-established companies poised for significant growth, FBCG offers a professionally managed approach, albeit with a higher expense ratio reflecting its active strategy.
InvestingPro: Unlock ETF Data
Discover the capabilities of InvestingPro for evaluating Fidelity ETFs. When researching potential investments like the Fidelity ETFs mentioned, having access to comprehensive data and analysis tools is crucial. InvestingPro provides investors with powerful resources to streamline this process.
Access in-depth analysis of Fidelity ETFs, easily compare key metrics like expense ratios, historical performance (1-year and 5-year returns), holdings breakdowns, and risk assessments. With InvestingPro, you can quickly benchmark different ETFs against each other or against market indices, helping you make more informed decisions aligned with your investment goals and risk tolerance.
Should I Buy Fidelity ETFs?
Investing in Fidelity ETFs can offer several advantages, but it also comes with inherent risks:
Potential Benefits
- Low Costs: Fidelity is known for offering many ETFs with very competitive, low expense ratios, helping maximize your returns.
- Diversification: ETFs provide instant diversification across numerous stocks within a single investment, reducing single-stock risk.
- Accessibility & Liquidity: Fidelity ETFs trade like stocks on major exchanges, making them easy to buy and sell during market hours.
- Reputable Issuer: Fidelity is a large, well-established financial services firm with a long history of investment management.
- Variety: Fidelity offers a wide range of ETFs covering various asset classes, sectors, factors, and strategies.
Potential Risks
- Market Risk: Like any stock market investment, the value of ETFs can fluctuate based on overall market conditions, economic news, and geopolitical events. You can lose money.
- Sector/Concentration Risk: Sector-specific ETFs (like FTEC) or thematic ETFs can be more volatile than broadly diversified funds if that particular sector falls out of favor. ETFs with heavy weightings in a few top holdings also carry concentration risk.
- Tracking Error: While usually minimal for large index ETFs, there can be slight differences between an ETF’s performance and the index it’s designed to track. Active ETFs like FBCG carry the risk that manager decisions may underperform the market.
How to Find the Top Fidelity ETFs?
Choosing the right Fidelity ETF requires research tailored to your individual financial goals, risk tolerance, and investment horizon. Here’s a process to follow:
1. Analyze Holdings
- Before investing, understand what assets the ETF holds. Does it track a broad market index, a specific sector, a particular factor (like dividends or growth), or is it actively managed? Knowing the underlying holdings helps you assess if the ETF aligns with your investment thesis and desired exposure. Check for concentration risk – are the top holdings dominating the fund? Use InvestingPro to gain insights into sector allocation, top holdings, and diversification metrics.
2. Check Expense Ratios
- Lower expense ratios mean more of your money stays invested and compounds over time. Compare costs across different Fidelity ETFs that meet your criteria, balancing fees with the fund’s strategy and potential performance. Use tools like InvestingPro to easily assess and compare expense ratios across a range of ETFs.
3. Review Performance and Liquidity
- Historical performance isn’t a guarantee of future returns, but it provides valuable insights into how the ETF has behaved under various market conditions and how it compares to its benchmark or peers. Also, ensure the ETF has sufficient daily trading volume (liquidity) so you can buy or sell shares easily at competitive prices. Within InvestingPro, you can find detailed performance data and compare the ETF’s returns against relevant benchmarks.
4. Understand the Theme
- Ensure the ETF’s investment strategy or theme aligns with your outlook and portfolio needs. Are you seeking growth, income, value, international exposure, or a specific sector bet? Choose ETFs that fit logically within your overall investment plan.
Best Fidelity ETFs Frequently Asked Questions
What makes Fidelity ETFs attractive to investors?
Fidelity ETFs are popular due to their generally low expense ratios, the strong reputation of Fidelity as an asset manager, a wide selection covering various investment strategies, and the ease of trading them like stocks.
Are Fidelity ETFs suitable for beginners?
Yes, many Fidelity ETFs, especially broad market index funds (like those tracking the S&P 500 or total stock market), can be excellent core holdings for beginners due to their diversification and low costs. However, understanding the specific ETF’s strategy is crucial before investing.
How often do the holdings in a Fidelity ETF change?
For index ETFs (like ONEQ, FTEC, FDVV based on an index methodology), holdings change when the underlying index rebalances, which typically happens quarterly or semi-annually. For actively managed ETFs (like FBCG), the manager can change holdings at any time based on their research and market outlook.
Can I lose money investing in Fidelity ETFs?
Yes. Like all investments tied to the stock market, the value of Fidelity ETFs can go down as well as up. You could lose some or all of your principal investment. It’s essential to understand the risks involved and invest according to your risk tolerance.