Fidelity is one of the largest and the most established broker in the country. It offers various investment options including stocks, mutual funds, and exchange-traded funds. Amid the ongoing uncertainty, investors are actively moving towards low-risk investments, and ETFs have become popular. Year-to-date, the ETF industry has seen an inflow of over $400 billion amid the market volatility.
I believe ETFs are an ideal way to achieve portfolio diversification, own the top stocks, and ensure steady growth. Fidelity is known to offer some of the best ETFs in the market and it has over 70 ETFs to choose from. If you do not have the time to research all of them, I can make the job easier for you. Here are the three Fidelity ETFs to buy in June and hold forever.
Key Points
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Fidelity is known for some of the best ETFs in the industry.
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Here are three top-quality ETFs worth buying and holding forever.
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Fidelity High Dividend ETF
The Fidelity High Dividend ETF (NYSEARCA:FDVV) is a relatively safe investment with the top dividend-paying companies. FDVV tracks the performance of the Fidelity High Dividend Index. It includes large-cap, solid businesses that have a history of dividend payments. The ETF holds 121 stocks and its top holdings include the Magnificent Seven. FDVV is tech-focused and highly diversified. It is a reliable safe-heaven asset during periods of volatility since it owns rock-solid companies.
Other than the tech giants, the fund holds Coca-Cola, Procter & Gamble, and Visa. Despite holding a large share of Magnificent Seven, the fund remains highly diversified and owns a few Dividend Kings who have never disappointed in the past. It has an annual dividend yield of 3.28% and makes quarterly cash dividend payments. Its holdings include:
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Information Technology: 23.69%
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Financials: 21.60%
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Consumer Staples: 13.52%
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Utilities: 9.70%
The ETF’s highest holdings lie in Microsoft Corporation, Nvidia, and Apple Inc. which make up for 15.79 % of the total fund. The highly diversified ETF owns elite names and the best dividend-paying companies.
FDVV has a low expense ratio of 0.16%, which means you get to keep more of your money. The NAV of the fund is $51.14 and it has soared over 80% in five years.
Fidelity Blue Chip Growth ETF
As the name suggests, the Fidelity Blue Chip Growth ETF (BATS:FBCG) invests in blue-chip companies that are mid-cap or large-cap. This means investors get to hold some of the biggest U.S. companies at low risk. These companies often have a high growth potential. It has an expense ratio of 0.60% and an NAV of $45.95. Its total holdings include 211 stocks with the highest weightage of 12.34% in Nvidia.
FBCG is a tech-heavy fund with the Magnificent Seven in its top holdings. The top 10 stocks include Amazon, Microsoft, Meta and Alphabet. The fund has generated total returns of 22.27% in three years. Its holdings include:
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Information Technology: 44.98%
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Consumer Staples: 20.17%
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Communication Services: 15.95%
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Healthcare: 7.65%
The NAV of FBCG is $45.99, up by 8.39% in 12 months and 120% in five years. Almost half of the fund is invested in tech stocks which is why its NAV has rallied over the last few years. FBCG has a yield of 0.13% and a 1-year return of 12.07%. If you believe the future is tech, FBCG is an ideal ETF to buy and hold forever.
Besides the tech giants, it also holds companies like Eli Lilly, Broadcom, Coca-Cola, and Walmart which have shown steady growth and resilience amid market uncertainty.
Fidelity Nasdaq Composite Index ETF
Investors who seek a higher exposure to Nasdaq might want to consider the Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ). It has more than 1,000 stocks and is a heavily diversified ETF. Despite the large stock holdings, the fund is top-heavy and tech-focused. Its holdings include:
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Information Technology: 49.64%
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Communication Services: 15.26%
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Consumer Durables: 14.85%
Its top 10 holdings include the Magnificent Seven which constitute about 58% of the fund.
One solid reason to choose this ETF is the smaller caps that set it apart from other ETFs. Further, its holding in the financial sector continues to stand out as a strong performer. Besides the top tech stocks, the fund has stalwarts like PepsiCo, Costco, and Linde PLC. ONEQ has generated 29% returns in 2024 and even if you hold the fund for the short term, you could take home impressive gains. Over the long term? Even more.
ONEQ has an NAV of $76.87 and is up 10% in 12 months and 100% in five years. The NAV is very close to the 52-week high but I think it could hit a new high very soon. It has an expense ratio of 0.21%. The large-cap fund has a 30-day SEC yield of 0.45%. With over 1,000 holdings, a low expense ratio, and steady returns, the ETF is as diversified as it can possibly get.
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