A limited number of exchange-traded funds, totaling 51, are available via Fidelity Investments. Its lineup consists of actively managed ETFs and passively managed funds, with some consideration for factor and theme investing.
Fidelity's funds may satisfy the vast majority of an investor's requirements for exchange-traded funds (ETFs). However, to construct a diversified portfolio, you will require the whole market ETFs for U.S. and overseas equities from other fund families since Fidelity cannot conspicuously provide you with these investment options. So, what are the best fidelity etfs for 2022?
Fidelity New Millennium ETF (FMIL)
The Fidelity New Millennium Exchange Traded Fund (ETF) is an actively managed ETF that measures its returns against the S&P 500. It was introduced in the year 2020. The fund's primary objective is to achieve growth in its capital via investments in developing and innovative technology firms. Managers look for companies with inventive goods and new technology and pay attention to demographic and societal trends while screening candidates. FMIL can invest in businesses of every size, from microcaps to mega-caps. Still, its primary focus is on value investing, which involves purchasing shares in businesses it feels are selling at a discount.
Fidelity Sustainable U.S. Equity ETF (FSST)
For investors interested in using an active management strategy in their ESG investments, the Fidelity Sustainable U.S. Equity ETF, which will be introduced in June 2021, is a solid option. The fund's objective is to achieve long-term growth while investing at least 80% of its assets in firms in the United States that demonstrate excellent ESG and sustainability policies. As a result of the fund's preference for smaller, more rapidly expanding companies, the fund exhibits a standard deviation of returns of 18.52 percentage points higher than the market average.
Fidelity High Dividend ETF (FDVV)
Investors who seek the cash flow and investing options that dividends might give should consider purchasing High Dividend ETF. This is a fantastic choice for investors. FDVV is a fund managed passively and was established in September 2016. Its goal is to generate returns comparable to those of Fidelity High Dividend Index, which comprises big and mid-cap dividend-paying companies with both stable and rising dividends.
Fidelity Low Volatility Factor ETF (FDLO)
The Fidelity Low Volatility Factor ETF is an option that should be considered by investors who want to protect their portfolios against significant drops in market value, such as those that occurred in 2022 and 2020. During the prior five years, FDLO had a standard deviation of 15, while the big cap blend category of funds had a standard deviation of 17.20. Less volatility indicates steadier results in rough markets. Lower risk and better returns than the average for the category create an attractive proposition.
Fidelity Low Duration Bond Factor ETF (FLDR)
When interest rates are expected to go up, choosing a solid bond fund to invest in might take time. This is because the value of bonds decreases whenever an interest rate increases. The Fidelity Low Duration Bond Factor ETF is an exchange-traded fund that seeks to mitigate this impact by investing only in bonds of one year or less. If successful, this strategy should prevent drawdowns and boost dividend payouts while interest rates increase.
Fidelity Electric Vehicles and Future Transportation ETF (FDRV)
Both climate change and rising crude oil costs point to the likelihood of a rise in the demand for electric vehicles (EVs) over the next few decades. Be warned, however, that investing in individual sectors is a riskier strategy than selecting ETFs with a wide diversification and that it may result in bigger losses if a market sector experiences a drop.
The Fidelity Electric Vehicles and Future Transportation ETF were introduced to the public in October 2021 and comprised just 58 equities, 10 of which account for 38.55% of the portfolio's total value. As a benchmark, the product's performance is measured against the Fidelity Electric Vehicles and Future Transportation Index. The fund is passively managed.
Fidelity MSCI Real Estate Index ETF (FREL)
The MSCI Real Estate Index Exchange Traded Product (ETF) offered by Fidelity is a real estate investment trust (REIT) fund that is passively managed, has minimal management fees, and follows the MSCI USA IMI Real Estate Index. Rising interest rates may be detrimental to investors in fixed income; nevertheless, inflation can be beneficial to the growth of real estate values. You may anticipate receiving a consistent income stream from FREL because REITs are mandated to distribute ninety percent of their profits to their shareholders in the form of dividends.
