In turbulent times, investors would be well served considering the best Fidelity funds to buy now. Primarily, Fidelity represents an organization with a well-earned reputation for viability and stability.
According to the U.S. Census Bureau, our population grew at 0.1% in 2021, the slowest rate since the founding of the nation. While so much talk exists in the media about labor and inflation, prior paradigms always featured a rising population level. In contrast, we could be facing declining demographic trends, which inherently bolster the best Fidelity funds to buy now.
Put another way, we’re navigating uncharted territory so we’re making things up as we go along.
Another factor to consider with the best Fidelity funds to buy now is their diversity. Investors can gain exposure to various markets and themes. Further, if any one individual holding lags, others can potentially lift up the fund.
Given the variability of this environment, here are some ideas to consider for the best Fidelity funds to buy now.
|FXAIX||Fidelity 500 Index Fund||$148.96|
|FSPHX||Fidelity Select Health Care Portfolio||$28.07|
|FLGEX||Fidelity Large Cap Growth Enhanced Index Fund||$27.08|
|FDVLX||Fidelity Value Fund||$14.50|
|FBCG||Fidelity Blue Chip Growth ETF||$25.74|
|ONEQ||Fidelity Nasdaq Composite Index ETF||$49.85|
|FENY||Fidelity MSCI Energy Index ETF||$21.94|
|FCPI||Fidelity Stocks for Inflation ETF||$32.40|
|FOCPX||Fidelity OTC Portfolio||$15.48|
|FDVV||Fidelity High Dividend ETF||$39.49|
Best Fidelity Funds: Fidelity 500 Index Fund (FXAIX)
A mutual fund that tracks the S&P 500, buying into the Fidelity 500 Index Fund (MUTF:FXAIX) represents a market wager on America. If you follow the advice of the Oracle of Omaha Warren Buffett, you’ll know that he urged investors to never bet against America. The FXAIX fund allows you Buffett fans to put your money where your mouth is.
One of the best Fidelity funds to buy now for the long haul, the FXAIX doesn’t pull any punches. Its top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Combined, these three companies feature a market capitalization of nearly $6.3 trillion. For context, that’s about half of China’s entire GDP.
Better yet, the FXAIX is cheap to own, featuring a net expense ratio of 0.02% and a management fee of 0.015%, which are well below their respective category averages.
Fidelity Select Health Care Portfolio (FSPHX)
A major factor bolstering the best Fidelity funds to buy now is that they allow investors to buy into trends as opposed to single stocks. Moving forward, easily one of the biggest trends is healthcare. With baby boomers retiring en masse, healthcare demands will almost surely rise. As well, the growing threat of deadly diseases incentivizes the biotechnological and pharmaceutical industries to continue research and development initiatives.
Therefore, if you’re looking for the ultimate in buy-and-hold ideas, the Fidelity Select Health Care Portfolio (MUTF:FSPHX) mutual fund represents an excellent choice. Its top three holdings are UnitedHealth Group (NYSE:UNH), Boston Scientific (NYSE:BSX) and Eli Lilly (NYSE:LLY).
Finally, FSPHX represents a good deal relative to category averages. Its net expense ratio of 0.67% and management fee of 0.52% are below the respective averages of 1.18% and 0.72%.
Fidelity Large Cap Growth Enhanced Index Fund (FLGEX)
According to the prospectus for the Fidelity Large Cap Growth Enhanced Index Fund (MUTF:FLGEX), the FLGEX normally invests at least 80% of assets in common stocks included in the Russell 1000. This index is market-cap weighted, designed to measure the performance of the large-cap growth segment of the equities sector.
Its top three holdings mimic that of the aforementioned Fidelity 500 Index Fund. Utilizing quantitative analytics to find the best high-growth opportunities among the largest players in the game, the FLGEX concentrates most its focus on the technology sector, representing 42.4% of all holdings. Next up is consumer cyclical at nearly 16% and communication services at 9.5%.
As with the other best Fidelity funds to buy now, the FLGEX is relatively cheap. Its net expense ratio of 0.39% and management fee (also 0.39%) are significantly below their respective category averages.
Fidelity Value Fund (FDVLX)
On the opposite end of the growth equation is of course value. Sure enough, the Fidelity Value Fund (MUTF:FDVLX) lets you know right off the bat what it’s all about. The beauty here is that the FDVLX focuses largely on lesser-known entities. While such a strategy is typically higher risk, investors enjoy the benefit of exposure to promising enterprises.
Currently, the mutual fund’s top three holdings are Antero Resources (NYSE:AR), Hess (NYSE:HES) and Cenovus Energy (NYSE:CVE). In terms of sector weighting, the FDVLX is more balanced than other funds, with the heaviest allocation belonging to industrials at 19.4%. Energy (14%) and consumer cyclical (13.4%) round out the top three sectors.
Following in line with the theme of comparative solid deals, the net expense ratio of 0.79% and the management fee of 0.65% are below their respective category averages of 1.05% and 0.68%.
Fidelity Blue Chip Growth ETF (FBCG)
Many investors may prefer ETFs over mutual funds. One of the main differences is that generally speaking, mutual funds are actively managed while ETFs are passively managed. In turn, the latter may feature superior cost structures.
For those that are seeking higher-growth opportunities with some of the biggest names in business, the Fidelity Blue Chip Growth ETF (BATS:FBCG) may be an appropriate idea. The ETF’s top three holdings are the usual suspects: Apple, Microsoft and Amazon. However, FBCG also features popular names like Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
In terms of weighting, FBCG concentrates the most in tech at 41.7%, followed by consumer cyclical (25.4%) and healthcare (7.5%). The major drawback, though, is that FBCG is a tad expensive with an expense ratio of 0.59%. The category average is 0.55%.
Fidelity Nasdaq Composite Index ETF (ONEQ)
Though the tech sector presents some of the most exciting public companies, it’s also among the riskiest. Often tied to an aspirational narrative, firms that lead in innovative ideas can also spectacularly fail. That’s one reason why the Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) cuts an interesting figure. By distributing the risk across multiple tech names, ONEQ investors can focus on themes rather than individual business plans.
As with the other best Fidelity funds to buy now, ONEQ runs with the biggest companies in the U.S. with its top four holdings: Apple, Microsoft, Amazon and Tesla. At the same time, ONEQ varies its exposure, which include companies like Meta Platforms (NASDAQ:META) and PepsiCo (NASDAQ:PEP).
What people will undoubtedly appreciate is that ONEQ is attractively priced. Featuring an expense ratio of 0.21%, it’s well below the category average of 0.55%.
Fidelity MSCI Energy Index ETF (FENY)
Despite all the political talk about going green, the harsh reality is that hydrocarbon energy sources will likely be relevant for decades to come. The issue comes down to capacity factors. While wind and solar draw plenty of attention, their capacity factors – essentially their measurement of reliability – are 35.4% and 24.9%, respectively. On the other hand, natural gas has a capacity factor of 56.6%.
Further, geopolitical tensions imply that energy demands will likely boom again. Therefore, it’s time to advantage the lull in the sector and consider the Fidelity MSCI Energy Index ETF (NYSEARCA:FENY).
FENY’s top three holdings are Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP). Further, the ETF features an expense ratio of only 0.08%, well below the category average of 0.43%. Therefore, it’s a viable candidate for the best Fidelity funds to buy now.
Fidelity Stocks for Inflation ETF (FCPI)
Say what you want about the consumer price index easing slightly to 8.5%, to borrow the Wall Street Journal’s language. Regular folks don’t live and breathe by indices and other lofty gauges. Instead, if prices are high at the grocery aisle and the gas pump – and wages aren’t keeping up – consumers are likely to complain. In other words, nothing much has changed.
Given the possibly nasty and protracted battle with inflation that we have before us, the Fidelity Stocks for Inflation ETF (BATS:FCPI) makes plenty of sense. The ETF focuses on public companies that tend to do well during inflationary cycles. Therefore, aside from Apple and Microsoft, the FCPI includes Marathon Oil (NYSE:MRO) and Nucor (NYSE:NUE) among its top holdings.
About the only drawback is that FCPI is somewhat pricey. Featuring an expense ratio of 0.29%, it’s not that far removed from the category average of 0.42%.
Fidelity OTC Portfolio (FOCPX)
Going back to mutual funds, this segment has a reputation for highlighting safe-but-boring names. However, the Fidelity OTC Portfolio (MUTF:FOCPX) proves that sometimes, mutual funds can dial up the spiciness. The FOCPX fund mostly focuses on companies either listed on the Nasdaq exchange or the over-the-counter market.
To be fair, OTC-listed securities don’t always mean penny stocks. Several reasons exist why certain companies prefer their shares to be traded in the pink sheets. Mainly, it comes down to the cost structures associated with listing on a proper exchange. Still, the FOCPX brings some intriguing ideas to the table, even though its core holdings represent the usual suspects.
In terms of fees, the FOCPX is somewhat of a mixed bag. On the net expense ratio side of things, it pings as 0.8%, below the category average of 1.01%. However, the management fee of 0.66% is higher than the category average of 0.62%.
Fidelity High Dividend ETF (FDVV)
Finally, to round out this list of the best Fidelity funds to buy now, investors ought to consider the Fidelity High Dividend ETF (NYSEARCA:FDVV). According to its prospectus, the FDVV is “designed to reflect the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.”
Its top two holdings of Apple and Microsoft are not surprising; other names among the best Fidelity funds to buy now feature them. However, to presumably bolster the dividend portion of its objective, the FDVV features Exxon Mobil and Chevron as its No. 3 and No. 4 holdings.
However, those seeking shelter from the inflationary storm will have to pay a bit of a premium. The expense ratio of this dividend ETF is 0.29%. While below the category average of 0.38%, it leans on the higher end of the spectrum.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.