5 Best Fidelity ETFs to Buy Now

The best Fidelity ETFs from the leading money manager include a little something for everyone.

A Fidelity Investments office in Washington, DC, US, on Friday, March 1, 2024.
(Image credit: Graeme Sloan/Bloomberg via Getty Images)

Fidelity is best known for its tactical approach to investing, placing a priority on adjusting to market dynamics.

And while a few of the best Fidelity ETFs give you cheap, passive exposure to broad-market benchmarks such as the Nasdaq Composite, the majority of offerings provide alternatives to typical index funds.

That's where Fidelity shines. It uses "smart beta" approaches and skilled investment managers who take deep dives when researching sectors or investment themes to discover the best investments that are working right now.

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Whether you're looking for plain passive exchange-traded funds or aggressive options designed for quick returns, the following list of five best Fidelity ETFs likely has something for you and your investing goals.

To find the top Fidelity ETFs to buy, we focused on funds with assets under management of at least $4 billion, indicating they are well-established.

We also included funds from several asset classes with low expense ratios. Data is as of May 28.

Fidelity Wise Origin Bitcoin Fund

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(Image credit: Getty Images)
  • Assets under management: $21.5 billion
  • Expenses: 0.25%, or $25 annually for every $10,000 invested

The Fidelity Wise Origin Bitcoin Fund (FBTC) is one of Fidelity's newest ETF offerings, launched in January 2024.

FBTC is nevertheless one of the most popular options under the firm's umbrella. That's thanks to steady interest in crypto markets and bitcoin, in particular, which is the key underlying asset of this Fidelity ETF.

With 100% of assets invested in bitcoin, FBTC provides a simple and effective way to get exposure to cryptocurrency.

And with bitcoin up roughly 60% in the last 12 months and 14% for the year to date, that makes this one of the best Fidelity ETFs to consider for those looking to broaden their exposure beyond typical blue chip stocks.

Learn more about FBTC at the Fidelity provider site.

Fidelity Total Bond ETF

The word bonds on a digital screen with a green triangle next to the word.

(Image credit: Getty Images)
  • Assets under management: $18.5 billion
  • Expenses: 0.36%

The Fidelity Total Bond ETF (FBND) is another very popular and well-established Fidelity fund due it its lower risk profile.

FBND is an actively managed bond fund that holds some 4,300 different debt securities and yields more than 5% at present. This is nearly four times the yield of the S&P 500 Index.

The Fidelity ETF holds it all, from rock-solid bonds issued by the U.S. Treasury to a smattering of higher-risk but higher-return "junk bonds" from subpar companies.

About a third of FBND's assets are in government bonds to provide a firm foundation, but another third of the portfolio is allocated to corporate bonds, some of which are loans to distressed companies that offer super-sized yields.

All in all, it is a diversified Fidelity fund that truly gives you exposure to the entire bond market.

Learn more about FBND at the Fidelity provider site.

Fidelity MSCI Information Technology Index ETF

digital rendition of orbital light spheres representing the flow of information through cyberspace

(Image credit: Getty Images)
  • Assets under management: $12.9 billion
  • Expenses: 0.084%

The Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed sector fund that includes roughly 300 tech stocks.

That allows investors to look deep into the high-growth sector and gain exposure to a variety of companies, from trillion-dollar tech companies to smaller software firms.

Admittedly, FTEC is weighted by market value, so more than 50% of its assets are in the top 10 stocks alone – a lineup that includes tech giants Apple (AAPL), Microsoft (MSFT) and Nvidia (NVDA).

But that could be a feature, not a bug, for those who consider these leaders a strong foundation for this tech ETF to smooth out the volatility that smaller technology names might experience along the way.

Learn more about FTEC at the Fidelity provider site.

Fidelity High Dividend ETF

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(Image credit: Getty Images)
  • Assets under management: $5.1 billion
  • Expenses: 0.16%

If you're interested in yield but would prefer dividend stocks to bonds, the Fidelity High Dividend ETF (FDVV) might be worth a closer look.

This fund holds a focused list of only about 120 or so stocks, but it's one of the best Fidelity ETFs because of its selectivity.

Specifically, FDVV zeroes in on the very best dividend-paying stocks based on consistency of distributions, a strong history of payouts and expectations that they'll continue to grow those dividends going forward.

Top holdings at present include tech giant Microsoft, mega-bank JPMorgan Chase (JPM) and tobacco icon Philip Morris International (PM) – a who's who list of reliable dividend payers.

Learn more about FDVV at the Fidelity provider site.

Fidelity Enhanced Large Cap Core ETF

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(Image credit: Getty Images)
  • Assets under management: $4.3 billion
  • Expenses: 0.18%

As its name implies, the Fidelity Enhanced Large Cap Core ETF (FELC) focuses on core large-cap holdings such as Apple, Berkshire Hathaway (BRK.B) and Meta Platforms (META).

The fund is more selective than your typical S&P 500 ETF, however, with only about 200 holdings.

The large-cap stocks are selected based on multifactor statistical models that prioritize fundamental characteristics such as profit and sales growth, as well as valuation metrics.

As is typical of Fidelity, there's no way to know the "secret sauce" for certain. However, for those looking to branch out from vanilla index funds, this is one of the best Fidelity ETFs to consider.

Learn more about FELC at the Fidelity provider site.

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Jeff Reeves
Contributing Writer, Kiplinger.com

Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.