7 Best Fidelity ETFs to Buy Now
You don’t have to meticulously analyze stocks and market trends on a daily basis to generate enticing long-term returns. Fund managers do the work for you with various exchange-traded funds, or ETFs, and some of those funds are quite cheap.
Fidelity is one of the leaders in the industry due to its low expense ratios and high annualized returns. Some Fidelity ETFs have expense ratios below 0.1%. That means for each $10,000 you put into these types of Fidelity ETFs, you only have to pay $10 per year or less in fees. That’s the power of a low expense ratio, and you can also end up with better returns as a result.
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Investing in ETFs offers several benefits that you may not get from constructing your own portfolio. Cristian Mundy, a certified financial planner and senior wealth manager at Life Line Wealth Management, explains the advantages of ETFs like those that Fidelity offers. “Buying ETFs provides a high level of diversification, providing a broad range of asset exposure in specific sectors or indexes under a single investment,” he says. “ETFs tend to have lower management fees and internal costs as compared to mutual funds, allowing for more compounded interest over time.”
Another key benefit of ETFs is their accessibility. You don’t have to be the smartest investor to beat the market. You just have to put your money into high-quality ETFs run by good fund managers.
“Typically, there are no minimums required to begin investing, making them easily accessible. ETFs trade through the trading day, therefore you can have a higher level of liquidity during market hours and transparency throughout,” Mundy explains.
Fidelity has offered ETFs since 2003 and now has dozens of them in a wide range of sectors and industries. You can find low-volatility ETFs that focus on fixed income and high-yield dividend stocks. However, if you want to increase your returns, Fidelity’s growth ETFs offer exposure to companies that post impressive revenue and earnings growth.
If you want to grow your portfolio at low cost, consider these top Fidelity ETFs for the long run:
| ETF | Expense ratio |
| Fidelity Blue Chip Growth ETF (ticker: FBCG) | 0.59% |
| Fidelity Fundamental Large Cap Core ETF (FFLC) | 0.38% |
| Fidelity Nasdaq Composite Index ETF (ONEQ) | 0.21% |
| Fidelity Enhanced Large Cap Growth ETF (FELG) | 0.18% |
| Fidelity MSCI Information Technology Index ETF (FTEC) | 0.08% |
| Fidelity High Dividend ETF (FDVV) | 0.16% |
| Fidelity Disruptive Finance ETF (FDFF) | 0.50% |
Fidelity Blue Chip Growth ETF (FBCG)
The Fidelity Blue Chip Growth ETF gives investors exposure to roughly 200 large growth stocks.
It’s not as diversified as you would think, based on 60% of total assets going into the top 10 holdings. You’ll also see familiar names at the top of the list, such as Nvidia Corp. (NVDA), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL).
The top-heavy approach has been a boon for investors. Shares have produced an annualized 23% return over the past three years. It doesn’t have as much history as other Fidelity ETFs, but it has outperformed the market.
The actively managed fund allocates at least 80% of its assets to blue-chip companies and is filled with tech giants. It has a 0.59% expense ratio, which is a pretty fair trade considering the fund’s long-term returns. FBCG has $4 billion in net assets.
Fidelity Fundamental Large Cap Core ETF (FFLC)
The Fidelity Fundamental Large Cap Core ETF plays favorites just like FBCG. The Magnificent Seven are the main stars in the fund’s top 10 holdings. Tesla Inc. (TSLA) is the only Magnificent Seven stock that isn’t in the ETF. Exxon Mobil Corp. (XOM), Wells Fargo & Co. (WFC), Bank of America Corp. (BAC) and Boston Scientific Corp. (BSX) round out the top 10.
However, FFLC isn’t as top-heavy as FBCG. Only 38% of its capital goes toward the top 10 holdings. Unsurprisingly, FFLC caters the most to tech investors. The information tech sector makes up 27% of the fund’s total assets. The financial sector is in a distant second, making up 15.4% of FFLC’s total assets.
The fund has roughly $700 million in assets and a 0.38% expense ratio. You’ll get a 1.04% SEC yield while you wait for the fund to grow. This Fidelity ETF has delivered an annualized 16.5% return over the past three years.
Fidelity Nasdaq Composite Index ETF (ONEQ)
While the first two funds are relatively new, the Fidelity Nasdaq Composite Index ETF has been around since 2003. It’s the first ETF Fidelity launched, and it’s still beating the market all of these years later. ONEQ uses the Nasdaq Composite Index as a benchmark, with at least 80% of its assets in common stocks included in the index. This winning formula has produced an annualized 16.5% return over the past 15 years. The annualized three-year and five-year returns are even higher, coming in at 18% and 16%, respectively.
The Magnificent Seven stocks once again take the spotlight, and the top 10 holdings make up 57% of the fund’s portfolio. Due to Alphabet having two share classes, the only non-Magnificent Seven stocks in the top 10 are Broadcom Inc. (AVGO) and Netflix Inc. (NFLX). Even then, Broadcom is a part of the recently devised BATMMAAN stocks, which are all of the Magnificent Seven stocks plus Broadcom. ONEQ has $7.4 billion in assets, a 0.21% expense ratio and a 0.53% SEC yield.
Fidelity Enhanced Large Cap Growth ETF (FELG)
The Fidelity Enhanced Large Cap Growth ETF has a 0.18% expense ratio and $3.3 billion in total assets. About 50% of the fund’s assets are allocated to the technology sector, with a strong emphasis on semiconductor and software stocks.
More than 80% of the fund’s assets are in mega-cap stocks. Unsurprisingly, the top three stocks are Nvidia, Apple and Microsoft. Each of these stocks makes up more than 10% of FELG’s total assets. This top-heavy ETF has allocated about 58% of its total capital to its top 10 holdings.
Pouring capital into Mag Seven stocks has worked out well for this Fidelity ETF and many other funds. FELG has an annualized 17.8% return over the past five years. The fund also has an impressive annualized return of 15% over the past 10 years.
[Read: 7 Best Tech ETFs to Buy in 2025]
Fidelity MSCI Information Technology Index ETF (FTEC)
The Fidelity MSCI Information Technology Index ETF aims to mirror the MSCI USA IMI Information Technology Index. FTEC has been a top-performing Fidelity ETF, with an annualized return of 19.4% over the past five years and the same return in the past decade.
This ETF is all tech, with more than 99% of its total assets going into the high-growth sector. The industrial and financial sectors have small 0.42% and 0.26% slices of the fund’s total assets, respectively. Health care also makes up 0.01% of the fund’s total assets, but that puts a wrap on the fund’s sector diversification.
FTEC puts 60% of its capital to work in its top 10 holdings. It’s even more concentrated when you narrow your focus to its top three holdings. Nvidia, Apple and Microsoft make up more than 45% of the fund’s total assets. The fund has a reasonable 0.084% expense ratio and a 0.55% SEC yield.
Fidelity High Dividend ETF (FDVV)
The Fidelity High Dividend ETF is a passively managed fund that aims to mirror the performance of the Fidelity High Dividend Index. Although dividend-paying Magnificent Seven stocks make the list of top 10 holdings, there is a stronger emphasis on stable dividend growth than growth without cash flow. JPMorgan Chase & Co. (JPM), Visa Inc. (V) and Philip Morris International Inc. (PM) are some of the stocks in the top 10 holdings.
It’s also not as top-heavy as other funds, with only 32% of its assets going into that group of stocks. It has a little more than 100 stocks in total. FDVV has delivered an annualized 17.4% return over the past five years and has a 3.2% SEC yield. That yield is more than enough to cover the $5.1 billion fund’s 0.16% expense ratio.
FDVV spreads most of its capital across large-cap stocks, and roughly one-quarter of its stocks are in the tech sector. The financial, consumer staples and real estate sectors also have an outsized influence on the fund’s total returns.
Fidelity Disruptive Finance ETF (FDFF)
The Fidelity Disruptive Finance ETF is an actively managed fund that allocates at least 80% of its capital to disruptive finance companies. The fund has a 0.5% expense ratio and a 0.6% 30-day SEC yield.
FDFF’s shares have been volatile since the fund’s inception in spring 2020, but it currently has an annualized NAV return of 12.4% over the past three years.
Mastercard Inc. (MA) is the largest equity position, making up 6.3% of the fund’s total assets. Visa, Capital One Financial Corp. (COF) and Equifax Inc. (EFX) are the next-largest holdings. It’s no surprise that the financial sector has heavy representation, making up 66% of the fund. Tech makes up an additional 26% of FDFF’s total assets.
Should Investors Buy Multiple ETFs?
Some Fidelity ETFs deliver higher returns than others, but the possibility of higher returns also comes with more risk. Furthermore, you may want to invest in a Fidelity ETF that focuses on a single sector, but you may need additional ETFs for true diversification.
Mundy offers some suggestions and explains how owning multiple ETFs can be beneficial: “The simple answer is yes if it provides proper diversification among different sectors of the market. Owning multiple ETFs that invest in the same companies, sectors and assets won’t provide the solution. You must look under the hood of that ETF to make sure they complement one another. Investors must be mindful of over-diversification and redundancy to ensure you’re getting the most out of your investments.”
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7 Best Fidelity ETFs to Buy Now originally appeared on usnews.com
Update 05/27/25: This story was published at an earlier date and has been updated with new information.