Fidelity fairly recently entered the competitive space of low-cost ETFs, and their fees even beat Vanguard in some cases. Below we'll check out some of the best Fidelity ETFs.
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Contents
Introduction – Fidelity ETFs
Fidelity is one of the oldest major brokerages. They closely rival and even beat Vanguard on things like fees, fractional shares, margin rates, etc.
Fidelity has ramped up its ETF offerings in recent years, in some cases with the lowest fees in the game. Weirdly though, Fidelity seems to keep its broad stock market index offerings (S&P 500, total U.S. stock market, etc.) as mutual funds; they don't have ETFs available for these. Their ETF offerings focus more on factors, sectors, bonds, and actively managed funds. The factor funds are either very new or have extremely low AUM and are likely at risk of closure. The bond funds have unusually high fees. The sector funds, however, are the hidden gems in my opinion.
Let's dive into the best Fidelity ETFs.
FTEC – Fidelity MSCI Information Tech ETF
At the time of writing, Fidelity's sector funds are the cheapest out there with expense ratios of 0.08%, compared to 0.10% for Vanguard. Given sufficient AUM and low tracking error, for any specific index, the Fidelity sector ETFs may be the way to go. FTEC is one of their most popular with over $5 billion in assets.
FUTY – Fidelity MSCI Utilities ETF
FUTY captures the Utilities sector via the MSCI USA IMI Utilities Index. I use a dash of FUTY in my own portfolio to diversify away from tech.
FREL – Fidelity MSCI Real Estate ETF
REITs deliver high dividends and exposure to the real estate market. FREL is one of the most affordable REIT ETFs.
Other Popular Fidelity ETFs Include:
- FSTA – Fidelity MSCI Consumer Staples ETF
- FDIS – Fidelity MSCI Consumer Discretionary ETF
- FENY – Fidelity MSCI Energy ETF
- FNCL – Fidelity MSCI Financials ETF
- FHLC – Fidelity MSCI Health Care ETF
- FIDU – Fidelity MSCI Industrials ETF
- FMAT – Fidelity MSCI Materials ETF
- FCOM – Fidelity MSCI Telecommunication Services ETF
Where To Buy These Fidelity ETFs
Luckily, all the above Fidelity ETFs should be available at any major broker. My choice is M1 Finance. The broker has zero trade commissions and zero account fees, and offers fractional shares, dynamic rebalancing, intuitive pie visualization, and a sleek, user-friendly interface and mobile app. I wrote a comprehensive review of M1 Finance here.
Disclosures: I am long FUTY.
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Disclaimer: While I love diving into investing-related data and playing around with backtests, this is not financial advice, investing advice, or tax advice. The information on this website is for informational, educational, and entertainment purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a research report. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. I mention M1 Finance a lot around here. M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. Hypothetical examples used, such as historical backtests, do not reflect any specific investments, are for illustrative purposes only, and should not be considered an offer to buy or sell any products. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here.
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