There are dozens of Fidelity exchange-traded funds (ETFs) trading in the U.S. markets, but today I’d like to focus on what I consider the best Fidelity ETFs. It can be a difficult task — Fidelity has many outstanding funds that boast total assets under management of around $25.5 billion.
Despite three interest rate hikes so far this year, analysts are still forecasting structurally higher prices due to tight energy supply and soaring demand for essential metals. As a result, the benchmark S&P 500 index is currently down 19% year-to-date (or YTD). Meanwhile, the tech-heavy NASDAQ 100 index has plunged more than 27% in 2022.
Amidst the ongoing market correction, July may be a great time to research the best Fidelity ETFs, as some are currently trading at bargain prices. They offer investors an easy, diversified and inexpensive path to a range of growth opportunities.
Against this backdrop, here are the seven best Fidelity ETFs to buy now:
|FBCV||Fidelity Blue Chip Value ETF||$27.03|
|FCLD||Fidelity Cloud Computing ETF||$15.85|
|FGRO||Fidelity Growth Opportunities ETF||$13.31|
|FTEC||Fidelity MSCI Information Technology Index ETF||$100.52|
|FSMD||Fidelity Small-Mid Factor ETF||$30.25|
|FCPI||Fidelity Stocks for Inflation ETF||$29.42|
|FBND||Fidelity Total Bond ETF||$46.99|
Fidelity Blue Chip Value ETF (FBCV)
52-Week Range: $25.55 – $30.37
12-Month Yield: 3.6%
Expense ratio: 0.59% per year, or $59 per $10,000 invested annually
The first fund we will discuss is the Fidelity Blue Chip Value ETF (BATS:FBCV). It seeks long-term capital growth in highly-regarded blue-chip companies prized for strong earnings and stable cash flows.
The fund started trading in June 2020 and tracks the Russell 1000 Value TR USD Index. It currently has a basket of 68 holdings. The top 10 stocks in the fund’s portfolio represent roughly one-third of $108 million in total net assets.
Among them are the diversified health care company UnitedHealth (NYSE:UNH); Procter & Gamble (NYSE:PG); energy giant Exxon Mobil (NYSE:XOM); and multi-national healthcare firm Centene (NYSE:CNC).
After hitting a 52-week high on April 21, FBCV came under pressure amid the market downturn. It lost around 8% year-to-date (YTD) and 5% over the past 12 months. The fund’s trailing price-to-earnings (P/E) and price-to-book (P/B) ratios are 16.63x and 2.35x, respectively.
Fidelity Cloud Computing ETF (FCLD)
52-week range: $15.04 – $30.87
12-Month Yield: Fund is less than 1 year old
Expense ratio: 0.39% per year
The Fidelity Cloud Computing ETF (BATS:FCLD) offers pure-play exposure to global companies that provide products and/or services, enabling the rising adoption of cloud computing. It tracks the market-cap-weighted Fidelity Cloud Computing Index and currently holds 54 stocks.
The ETF was first launched in October 2021. With $5.1 million in net assets, it is a relatively small fund with little trading history. Around a third of the portfolio is in the leading 10 companies.
Digital workflow group ServiceNow (NYSE:NOW); Germany-based application software specialist SAP (NYSE:SAP); customer relationship management technology provider Salesforce (NYSE:CRM); digital infrastructure name Equinix (NASDAQ:EQIX); and cloud data platform Snowflake (NYSE:SNOW) are among the most prominent holdings in the fund.
With regards to industrial exposure, we see software (68%), technology hardware, storage & peripherals (11.2%), IT Services (9.7%) and equity real estate investment trusts (REITs) (7.4%). The fund is heavily tilted toward U.S.-based companies (85%), followed by Germany (4.6%) and China (3%).
FCLD has lost over a third of its value since January. Trailing P/E and P/B ratios stand at 20.92x and 3.57x, respectively. Readers looking to invest in a thematic fund focusing on emerging cloud technologies could consider researching the fund further.
Fidelity Growth Opportunities ETF (FGRO)
52-Week Range: $12.65 – $22.68
12-Month Yield: 0.9%
Expense Ratio: 0.59% per year
The Fidelity Growth Opportunities ETF (BATS:FGRO) offers exposure to companies expected to have above-average growth potential. Stocks are selected based on fundamental factors, such as the company’s financial metrics and industry position as well as overall market conditions.
This actively-managed ETF is a non-transparent fund, disclosing its holdings only on a monthly basis with a 30-day lag. The fund started trading in February 2021. FGRO tracks the Russell 1000 Growth Index.
The top 10 stocks in the portfolio constituted 42% of the $53.6 million in total net assets as of June 30. It had over 140 holdings. They include Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL); Microsoft (NASDAQ:MSFT); Amazon (NASDAQ:AMZN); and T-Mobile (NASDAQ:TMUS).
FGRO is down around 36% YTD and hit a 52-week low on June 16. Trailing P/E and price-to-book (P/B) ratios are 22.4x and 4.15x, respectively. Following the decline on Wall Street, many of the names offer better margins of safety for long-term investors.
Fidelity MSCI Information Technology Index ETF (FTEC)
52-week range: $92.78 – $138.08
Dividend Yield: 0.9%
Expense ratio: 0.08 % per year
The Fidelity MSCI Information Technology Index ETF (NYSEARCA:FTEC) provides exposure to U.S. technology firms across all market caps. FTEC was first listed in October 2013. It tracks the MSCI USA IMI Information Technology Index and holds 395 stocks.
Over 60% of the portfolio is in the top 10 stocks. Meanwhile, the fund oversees $5.1 billion in net assets. Apple (NASDAQ:AAPL); Microsoft; Nvidia (NASDAQ:NVDA); Visa (NYSE:V); and Mastercard (NYSE:MA) are among the top names on the roster.
So far in 2022, FTEC is down 26%. Trailing P/E and P/B ratios stand at 22.69x and 6.9x, respectively. Potential investors seeking broad exposure to the tech sector in the U.S. could put the fund on their radar screen.
Fidelity Small-Mid Factor ETF (FSMD)
52-week range: $28.71 – $36.89
Dividend yield: 1.6%
Expense ratio: 0.29% per year
Next up on today’s list is the Fidelity Small-Mid Factor ETF (NYSEARCA:FSMD). The fund offers access to mostly small- and mid-cap U.S. companies with attractive valuations and positive price momentum signals, as well as lower volatility than the broader market.
FSMD, which started trading in February 2019, tracks the Fidelity U.S. Extended Investable Market Index. It currently has $68.5 million in total net assets.
Around 45% of the 599 stocks in the ETF’s portfolio are small-cap companies, while over 40% are allocated to mid-cap holdings. The top 10 names account for around 4% of the fund.
In terms of sectoral exposure, we see industrials (16.8%), financials (15.9%), information technology (14.3%), healthcare (13.4%), and consumer discretionary (12.2%).
Among the prominent names in the fund are insurance group W R Berkley (NYSE:WRB); Solaredge Technologies (NASDAQ:SEDG), which offers inverter solutions for solar photovoltaic (PV) systems; and diagnostic products developer Lantheus Holdings (NASDAQ:LNTH).
FSMD hit a 52-week low on June 16. So far this year, it is down around 16%. Trailing price-to-earnings (P/E) and price-to-book (P/B) ratios are 10.96x and 1.98x, respectively. The fund can offer a good opportunity to benefit from potentially higher returns in small- and mid-caps.
Fidelity Stocks for Inflation ETF (FCPI)
52-week range: $28.34 – $35.15
Dividend yield: 1.7%
Expense ratio: 0.29% per year
The Fidelity Stocks for Inflation ETF (BATS:FCPI) provides exposure to large- and mid-cap U.S. equities that may outperform the broad market in inflationary environments. These stocks typically boast attractive valuations, high-quality profiles, as well as positive momentum signals.
FCPI started trading in November 2019. FCPI tracks the Fidelity Stocks for Inflation Factor IndexSM Index.
The ETF currently has 101 holdings. As sectors, we see information technology (21.2%), healthcare (19.7%), consumer staples (11.2%), energy (10%) and materials (7.7%), among others. Around a third of the portfolio is in the top 10 stocks. Meanwhile, net assets stand at $257.7 million.
Apple, Microsoft, oil and gas giant Marathon Oil (NYSE:MRO) and the independent energy company APA (NASDAQ:APA) are among those top names on the roster.
FCPI has dropped 13% since the beginning of the year. The fund has a trailing P/E ratio of 9.5x and P/B ratio of 3x. Readers looking for enhanced diversification through names that may do well under inflation can research FCPI further.
Fidelity Total Bond ETF (FBND)
52-week range: $45.68 – $53.97
Dividend yield: 2.3%
Expense ratio: 0.36% per year
The final ETF for today, the Fidelity Total Bond ETF (NYSEARCA:FBND), is an actively managed fund that seeks to generate a high level of current income through investing in debt securities. It relies on the Bloomberg U.S. Agg Bond Index as a guide for its sector allocation and duration exposure.
FBND, which was first launched in October 2014, primarily invests in investment-grade and high-yield securities of varying maturities. Its current investments include corporate (38.3%), government (32.2%) and mortgage (16.4%) bonds.
This Fidelity ETF currently has a basket of 1,973 assets. The top 10 names comprise over a quarter of $2.2 billion in net assets. It had a duration of 6.13 years as of May 31.
FBND is down 11% YTD. It hit a 52-week low on June 14. The current price level might provide a good entry point for those seeking fixed-income exposure.
On the date of publication, Tezcan Gecgil, Ph.D., is both long and short AMZN and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.