If you plan to buy the best Fidelity ETFs in 2021, there is exciting news for you.
We will take a look at the top 10 Fidelity ETFs to buy in 2021, including the reason behind the price appreciation.
The global economy has expanded, and ETFs became a low-risk investment in the international market. The lower fees and higher profitability attract investors to trade in this sector.
Investment in ETFs has increased since 2008, with an indication of further growth in 2021.
What are Fidelity ETFs?
An exchange-Traded Fund or ETF is a pool of stocks from where an investor can buy a certain amount or share.
In ETF trading, the fund provider owns underlying assets and tracks their performance; later on, it sells shares to investors. Therefore, shareholders own a part of the ETF, not the full fund.
Investors can track the value of underlying assets, like gold and indices, like the S&P 500.
Almost 33 ETFs are traded on the US market, where Fidelity manages ETFs with a $19.55B value. The Expense ratio of Fidelity ETF is 0.27% that we can distinguish in two classes-
- Fixed Income
Among Fidelity ETFs, FDIS was the best performer in the last year, with almost 55.04% gain. Moreover, the biggest Fidelity ETF is the Fidelity MSCI Information Technology Index ETF [FTEC] that has a market value of $5.41B. Furthermore, the latest launched ETF was the US Multifactor ETF FLRG.
Overall, the Fidelity ETF is an excellent source of earning money in 2021, where we should follow some specific rules.
How to Invest in Fidelity ETFs in 3 steps?
Open a Trading Account
First, you have to open a trading account with a broker by clicking on the new account option. After that, you have to fill up a form that includes your name, email address, address, profession, experience, etc.
Choose Fidelity ETFs
After opening the account, you can see a list of trading assets on the trading platform. Therefore, you can select Fidelity ETFs from the list. Fund your account through the available deposit method and analyze the price based on a reliable trading strategy.
Place Your Trade
After getting the suitable Fidelity ETF, it is time to make the trade. In CFD trading, you can take both buy and sell positions in an asset. Therefore, make sure to maintain a risk management system and open the position.
Where Can I Trade Fidelity ETFs?
Trading Fidelity ETFs require a trading platform that supports this trading instrument. It is often difficult for traders to identify a well- regulated broker with these facilities. Therefore, we have mentioned three brokers in the table below from where you can start trading.
The brokers work as a mediator between a trader and the trading instrument, but what is the sign of a good broker?
A good broker always remains transparent about their service and costs. They focus on providing accurate prices with a transparent deposit and withdrawal method. Moreover, they often offer educational support, enabling traders to remain profitable in the market.
Finally, a good broker should have a vital customer support service. Most brokers currently provide email, social media, phone number, and email support, but the most used service is through live chat.
Best Fidelity ETFs to Buy Now
We have prepared the following list of the best 10 Fidelity ETFs to trade because of their good liquidity, historical performance, and the strong team behind them:
- Fidelity ZERO Total Market Index Fund (FZROX)
- 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)
- Vanguard S&P 500 ETF (VOO)
- iShares Core S&P 500 ETF (IVV)
- Schwab S&P 500 Index Fund (SWPPX)
- SPDR S&P 500 ETF Trust (SPY)
Fidelity ZERO Total Market Index Fund (FZROX)
Fidelity introduced The Fidelity ZERO Total Market Index Fund as one of the zero index funds. It corresponds with a ‘broad range’ of public companies in the US, including Microsoft, Apple, and Amazon.
The expense ratio of this instrument is 0%, with an initial investment of $10,000. Currently, FZROX has more than $6.1 billion in its asset management. Therefore, it is a good deal for investors that use the basic strategy of Fidelity Funds.
Fidelity Quality Factor ETF (FQAL)
Fidelity Quality Factor ETF ensures the growth and value without diminishing other factors. Companies with high quality confirm a standard like a strong balance sheet, a decent return on equity, and a low debt ratio.
Moreover, FQAL includes most of the cash-rich domestic companies, which is a significant advantage. Overall, FQAL showed the best performance last year, and it may continue the momentum in 2021.
Fidelity Low-Priced Stock Fund [FLPSX]
Fidelity Low-Priced Stock Fund defines stocks that have a price tag of $35 or below.
According to Fidelity, investing in stocks at or below $35 a share or an earnings yield similar to or above the Russell 2000 index may lead to investments in the median or small-sized companies.
Fidelity Fund is topping broader mid-cap value stocks that may influence investors to buy Fidelity Low-Priced Stock Fund in 202.
Fidelity Nasdaq Composite Index ETF (ONEQ)
Fidelity Nasdaq Composite Index ETF is the oldest and most overlooked Fidelity ETF with a 0.21% expense ratio. While investors focus on Nasdaq 100 tracking funds, Fidelity ONEQ holds more than 1000 holdings.
ONEQ considers factors like capitalization, dividend yield, PE ratio, PB ratio, and earning growths. Therefore, it creates a portfolio of securities in the Nasdaq Composite index with a similar profile.
Fidelity High Yield Factor ETF (FDHY)
Fidelity High Yield Factor ETF includes a fixed income offering with an expansive lineup and an expense ratio of 0.45%. It is an actively managed fund that is considered as the new Fidelity Fund with exposure to bonds.
It is also an actively managed ETF that can manage interest and credit risk if the market condition remains uncertain. Lastly, FDHY has a 4.34% SEC yield in SEC that may influence investors to consider it a reliable investment option.
Fidelity Dividend ETF for Rising Rates (FDRR)
Dividend-paying stocks can be vulnerable to rising interest rates, but Fidelity Dividend ETF for Rising Rates proves that notion wrong. This is an example of an equity-based fund designed to thrive when the Federal Reserve increases borrowing costs.
In FDRR, almost 7% of the value consists of utility and real estate works. Moreover, a large portion includes the cyclical section with a strong history of rising rates. Therefore, with an expense ratio of 0.29%, FDRR might be a substantial investment opportunity in 2021.
Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF is one of the largest funds that track the S&P 500 index. This ETF started its operation in 2010 and is backed by one of the fund industry powerhouse, Vanguard.
The expense ratio of VOO is 0.03%, which means you have to pay $3 in every $10,000 investment.
iShares Core S&P 500 ETF (IVV)
The iShares Core S&P 500 ETF is another large ETF, and like other larger funds, it focuses on the S&P 500.
It started the operation in 2000 and became a long-tenured player over time. It has a 0.03% expense ratio, and investors should keep this instrument on their list for best Fidelity ETF for 2021.
Schwab S&P 500 Index Fund (SWPPX)
Schwab S&P 500 Index Fund is a smaller sided fund that started the operation in 1997.
SWPPX was sponsored by Charles Schwab, a respected name in the industry. It focuses on investment-friendly products with a minimum expense ratio of 0.02%.
SPDR S&P 500 ETF Trust (SPY)
The SPDR S&P 500 ETF is the oldest ETF that was founded in 1993. It is sponsored by a heavyweight in the industry, State Street Global Advisors, which tracks the S&P 500.
It is an older ETF and has hundreds of billions in its fund that made it to be considered the most popular ETFs.
The expense ratio of SY is 0.09% annually, and it is one of the best Fidelity ETF for 2021.
Expert Tip on Investing in Fidelity ETFs
We believe that an investor should focus on his trading goal before investing in a trading instrument. Therefore, you should get extensive knowledge about the market and the trading instrument. Moreover, you can focus on reasons for price changes, timing, and the amount you have invested. Mostly, knowledge is the best tip that comes from experience.
Why Trade Fidelity ETFs?
There are some great reasons to choose Fidelity ETFs:
- Trading Cost: If we compare Fidelity ETFs with Mutual Funds, we would see that Fidelity ETFs are cheap. Therefore, we can get a higher return from the Fidelity ETF, considering the cost.
- Trading Flexibility: In Open-end mutual funds, investors can trade once per day after the market closes. On the other hand, in the Fidelity ETF, investors can do intraday trading during the trading hour.
- Diversification: Fidelity ETFs provide simultaneous exposure to many companies by index, region, country, and commodity. As a result, investors may find it as a safer way to achieve the ultimate trading goal.
Frequently Asked Questions
The number one Fidelity ETF depends on traders’ requirements from the market and how a trader implements their knowledge over the price.
The good or bad depends on how much time you can spend and how many plans you have taken. However, based on the macro outlook, low-risk ETFs may provide profit for years.
Both street investors and Wall Street investors invest in Fidelity ETFs.
A share is a unit of stock, and ETFs are a basket of stocks. In ETFs trading, traders can buy and sell the portion of the ETF or a whole.
Fidelity ETFs have lower risk options that might encourage beginner investors to invest. Still, an investor should focus on doing a lot of research and analysis to get the maximum output.
Almost 33 ETFs traded on the US market, where Fidelity manages ETFs at a value of $19.55B.