ETF investing ideas

Review our ETF investing ideas to help decide which types of ETFs may fit your investing needs, or use our screener to filter ETFs by specific criteria.

Finding the right ETF for you

Consider these strategies for ETF investing to help you choose which ETF best fits your needs.

Investing for income

In recent years, low yields have made it difficult to generate meaningful income through traditional fixed income options like bonds or CDs. Many investors look to ETFs for a diverse set of ways to help generate income.

As with bonds or dividend paying stocks, many of the same income benefits can also be secured through ETFs, which offer diversification, low costs, transparency, and flexibility, while also providing:

A steady stream of income

Growth potential

Diversified exposure

Fidelity offers a number of low-cost, commission-free ETFs across a variety of asset classes and investing styles that aim to provide income for investors.

Fidelity Dividend ETF for Rising Rates (FDRR)

Targets higher yielding companies with positive correlation to rising Treasury yields to help provide protection in a rising rate environment

Fidelity Total Bond ETF (FBND)

Seeks a high level of current income, using the entire opportunity set of global fixed income securities to help add value in different market environments

Fidelity International High Dividend ETF (FIDI)

Invests in international companies and aims to generate a higher relative dividend yield; dividend yields from international stocks have historically exceeded yields from their US-based peers

Past performance is no guarantee of future results.

Downside protection

The recent market downturn in early 2018 helped serve as a reminder to many investors to ensure their investment strategy matches their risk tolerance and goals. Beyond moving assets to cash or risk averse mutual funds, many investors look to ETFs that offer less sensitivity to the broader market during times of heightened market volatility.

ETFs are relatively low cost, transparent, tax efficient, and very flexible in their construct, while also providing:

Diversified protection from market downturns

Potential for growth

Potential to lower risk

Fidelity offers a range of low-cost, commission-free ETFs available for purchase across a variety of asset classes and investment styles that help to manage downside risk during major market drops.

Fidelity Low Volatility Factor ETF (FDLO)

Seeks to invest in securities that generate similar returns as the broader market over time with less volatility

Fidelity Consumer Staples ETF (FSTA)

Focuses on the consumer staples sector, which tends to have less sensitivity to the broader economy and may offer some downside protection against market declines

Fidelity Total Bond ETF (FBND)

Follows a multi-sector strategy that uses the entire opportunity set of global fixed income securities to help add value in different market environments

Enhanced growth

For investors seeking enhanced growth over time, factor ETFs may be a low-cost alternative to actively managed funds. Research supports that diversifying across multiple factors can help achieve more consistent relative outperformance over time. In addition, adjusting portfolio allocations over time to increase exposure to opportunistic factors can potentially add return potential.*

As with all ETFs, factor ETFs not only offer tax efficiency, transparency, and diversification, they can also provide:

Potential for growth

Exposure to solid fundamentals

Access to Fidelity's quantitative insights

Fidelity offers a number of proprietary ETFs that aim to provide enhanced returns over time by targeting exposure to strong companies, trending stocks, or attractive valuations.

Fidelity Momentum Factor ETF (FDMO)

Seeks outperforming stocks, which have historically tended to  outperform over the medium-term

Fidelity Value Factor ETF (FVAL)

Pursues cheap stocks, with low prices relative to fundamentals, which have historically outperformed the market over time

Fidelity Quality Factor ETF (FQAL)

Prioritizes companies with higher profitability, stable cash flows, and good balance sheets, which have tended to outperform their peers over time

Past performance is no guarantee of future results.

Browse ETFs with our screener

Our powerful screener lets you target and compare ETFs to generate ideas that closely match your investment goals.

Learn about ETFs

ETFs can be a low-cost option that offers a variety of benefits, such as diversification, tax efficiency, and broad market exposure. Learn more with select articles and courses below, or view all ETF-related topics at our Learning Center.

Learn about different types of ETFs, how they work, and the pros and cons of investing with them.

Be sure to avoid these common mistakes investors make when buying ETFs.

Read about some of the advantages to trading ETFs vs. individual stocks.

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