If you plan to buy the best Fidelity ETFs this year, there is some exciting news for you. The global economy has expanded, and ETFs are considered a low-risk investment in the domestic or international market. The lower fees and higher profitability associated with Fidelity attract numerous investors. Let’s take a look at the top ten Fidelity ETFs to buy this year!
Where Can I Trade Fidelity ETFs?
Good brokers always remain transparent regarding services and costs. They focus on providing accurate prices while maintaining a safe virtual trading environment. Moreover, they often offer educational support, enabling traders to remain profitable via research and analysis. To help you choose the best broker for your needs, we’ve shortlisted several platforms that offer Fidelity ETFs.
What Are Fidelity ETFs?
An exchange-traded fund or ETF contains different assets and trades on the stock exchange, along with equities. An ETF can track an index, an entire industry, a commodity, or another asset. When investors buy shares in the ETF, they diversify their portfolio since they invest in a basket of numerous shares.
Fidelity currently owns different ETFs that you can choose for your investment portfolio. These are actively or passively managed by Fidelity and include stocks, bonds, and more.
How to Trade and Invest in Fidelity ETFs?
Open a Trading Account
First, you have to open a trading account with an online stockbroker. After that, you have to fill up a form that includes your name, email address, address, profession, experience, and other personal details. You also need to provide a form of identification as per the KYC (Know Your Customer) guidelines.
Choose Fidelity ETFs
After opening the account, you can see a list of tradable assets on the platform. Make sure you deposit your capital in your new trading account at this stage. Online brokers offer varied deposit methods, including electronic transfers. Then, choose your preferred Fidelity ETFs based on our recommendations or select them from your broker’s offering based on our sound analysis.
Place Your Trade
The last step is to buy shares in your chosen Fidelity ETFs. Click on the assets, add the number of shares you want to purchase, then place your trade by clicking on “buy”. Monitor your trading portfolio, manage your position, and add more assets to your portfolio using the online trading platform.
Top 10 Fidelity ETFs to Buy
Here are the top ten Fidelity ETFs that you can purchase this year. We’ve also selected five of them to provide a detailed overview of their activity and performance.
- Fidelity Blue Chip Growth ETF (FBCG)
- Fidelity Quality Factor ETF (FQAL)
- Fidelity Low-Priced Stock Fund [FLPSX]
- Fidelity Nasdaq Composite Index ETF (ONEQ)
- Fidelity High Yield Factor ETF (FDHY)
- Fidelity Dividend ETF for Rising Rates (FDRR)
- Fidelity Magellan ETF (FMAG)
- Fidelity Real Estate Investment ETF (FPRO)
- Fidelity Blue Chip Value ETF (FBCV)
- Fidelity New Millennium ETF (FMIL)
1. Fidelity Blue Chip Growth ETF (FBCG)
Fidelity Blue Chip Growth ETF might be a good addition to your portfolio if you have a long-term investment strategy. It tracks blue-chip companies with a proven track record of excellent business performance. Additionally, these large-cap companies come with strong growth potential, so you can grow your capital over time.
Fidelity Blue Chip Growth ETF increased by nearly 51% in the last year and approximately 10% in the first half of 2021.
2. Fidelity Quality Factor ETF (FQAL)
Fidelity Quality Factor ETF contains a minimum of 80% of the assets of the Fidelity Quality Factor Index. If you choose this ETF, you can diversify your portfolio by investing in high-quality large and mid-cap stocks in the US.
FQAL’s share price started an uptrend in March 2021. This may be a great opportunity for investors who believe that the ETF will continue its growth in the future.
3. Fidelity Low-Priced Stock Fund [FLPSX]
Fidelity Low-Priced Stock Fund contains stocks that have a price tag of $35 or below. These common stocks are small and medium-sized domestic and foreign companies. It is also a mixed ETF with holdings including both value stocks and growth stocks.
FLPSX comes with a higher risk to investors due to the fact that it invests in foreign markets, not only domestic companies. Similarly, small cap companies may also be more volatile compared to large stocks.
4. Fidelity Nasdaq Composite Index ETF (ONEQ)
ONEQ closely tracks the Nasdaq composite index, corresponding to its performance. This is one of the oldest Fidelity funds and contains almost 1,000 holdings. Some of the most popular stocks in the ONEQ include Amazon, Apple, and Microsoft.
ONEQ uses capitalisations, dividend yield, PE ratio, PB ratio, and earnings growth, among others, to select assets. This is one of the best choices if you want to add a Nasdaq-tracking fund to your portfolio.
5. Fidelity High Yield Factor ETF (FDHY)
With an expense ratio of only 0.45%, FDHY is one of the Fidelity funds that come with a fixed-income offering. It is actively managed and one of the newest funds that include bonds. Given the average time span of 4.45 years, FDHY is an intermediate-term bond fund.
Fidelity High Yield Factor ETF is suitable for investors looking for fixed income over a medium period. In the last 52 weeks, the fund has a price increase of 5.89% as of this writing.
Expert Tip on Investing in Fidelity ETFs“ You need to consider your investment strategy before investing in a Fidelity ETF. There are multiple options suitable for the shorter or longer-term and based on your desired income, risk profile, and many more. One of the best aspects of adding an ETF to your portfolio is that it automatically diversifies your investment. Despite this, you should always make investments only after researching the chosen assets. ”- Mir Kamrul
Why Invest in Fidelity ETFs?
Fidelity ETFs provide simultaneous exposure to many industries and companies. This is a safer way of making investments as your portfolio contains a broad range of assets. Additionally, Fidelity ETFs are suitable for small investors due to the small fees or even zero-fee options.
Frequently Asked Questions
The number one Fidelity ETF depends on your strategy and investment approach.
The main benefit of ETFs is that they contain a pool of different stocks. As a result, you incur fewer risks compared to investing in only one or a few stocks. This makes Fidelity ETFs a great tool to diversify your investment.
Due to the versatility and variety of Fidelity ETFs, virtually any type of investor can choose these assets, including small investors with a long-term strategy seeking a fixed income.
When you buy shares, you need to select each company individually based on your own research. On the other hand, if you invest in ETFs, you essentially invest your capital in a diversified basket of shares.
Fidelity ETFs can be a great method to diversify your investment as a beginner. They are also affordable, so you do not need to adjust your budget.
There are numerous Fidelity ETFs that contain hundreds of assets.