3 Fidelity ETFs I'm Personally Buying Right Now

There are many financial wizards out there and personal finance experts who will tell you what to do, or provide strategies that they think will help individual investors outperform over the long-run. However, I’ve always felt that whoever is doing the talking should also be doing the walking, which makes investing alongside other folks in the financial media community more exciting (and adds credence to the bullish arguments made for specific holdings).

In the world of exchange traded funds (ETFs), the reality is that there are far too many options available for any investors to have claimed to have considered. Pick any sector or theme, and you’ll find dozens, if not hundreds (or thousands) of options to choose from. 

Thus, paring down a list to just the specific ETFs to simply those that meets one’s long-term investing goals is important. Here are the three I’ve picked for my personal Fidelity retirement portfolio. Note, I still have a few decades until retirement. 

Calvert U.S. Large-Cap Core Responsible Index Fund (CSXRX)

My top portfolio holding in one of my accounts is the Calvert U.S. Large-Cap Core Responsible Index Fund (CSXRX). This ETF is my largest weighting for a number of reasons. For one, the fund focuses on the largest U.S. companies with a sustainability focus. In other words, the key question this ETF’s management team tries to solve for is whether these companies will be around in a few decades’ time.

For those like myself with some time until retirement, that’s an important feature that shouldn’t be overlooked. This ETF has strict investing principles which allow investors to gain exposure to the best companies in the U.S. Now, investors do need to pay up for exposure to the quality companies this ETF provides, given this fund’s higher-than-typical 0.19% expense ratio (at least relative to most of the ETFs I look at). But I do think that the ultimate quality and diversification this fund provides (with plenty of growth stocks weighted heavily in this fund) should suit most long-term investors well.

Notably, this fund has continued to maintain a weighted price-earnings ratio of around 22-times, which is reasonable given where the overall market is. So, for investors looking for exposure to the best and brightest large-cap companies in the U.S. this is an ETF I think is worth considering right now. 

Fidelity MSCI Information Technology ETF (FTEC)

For investors who believe the long-term growth trends underpinning the technology sector are likely to continue, holding exposure to this specific basket of growth stocks can be a solid long-term strategy. Indeed, I find myself in such a bucket, and the Fidelity MSCI Information Technology ETF (FTEC) is one such ETF that fits my specific investing profile. 

This particular ETF focuses on the largest and most influential tech companies in the U.S. With most of the global growth in the tech sector continuing to come out of the U.S. (and that’s a trend I see as unlikely to change anytime soon), this ETF really provides the kind of exposure to high-growth stocks most investors who have a few decades to wait for retirement should want to consider. 

Now, it’s worth noting that this particular ETF is rather concentrated, with its top 10 holdings making up more than half of its value. That said, the top 10 holdings in this ETF which include the likes of Nvidia, Microsoft, Apple, Broadcom and others are companies I like for the long-term. Thus, with an expense ratio of just 0.08% and solid fundamentals (minimal turnover and a reasonable valuation multiple), this is a fund I think long-term investors can sleep well owning. 

Fidelity U.S. Bond Index Fund (FXNAX)

Last, but certainly not least on this list of top Fidelity ETFs to buy, we have the Fidelity U.S. Bond Index Fund (FXNAX). 

I like to include some exposure to bonds as part and parcel of my overall investing strategy. Some of this comes down the conventional wisdom that bonds should outperform equities during times of turmoil. And considering where yields currently stand, there’s plenty of so-called “dry powder” for the Federal Reserve to lower interest rates back down to their lower bound if we do get a recession. And if that happens, I’m betting this is a fund that should outperform. 

Like many investors, I view bonds and other fixed income assets really as security for my larger portfolio. I think that’s how this holding should be viewed.

But with an ultra-low expense ratio of around 0.03% and a current yield of 3.5%, there’s a lot to like about the return profile of this fund in good economic times as well. 

Personally, I’m betting on interest rates staying lower for longer, but that’s my medium to longer-term view of where bonds are likely to trade. For those who share this view, I’d suggest taking a closer look at this particular ETF. 

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