Finding the right ETF for you
Consider these strategies for ETF investing to help you choose which ETF best fits your needs.
Diversified core
During various market environments, a diversified portfolio can add growth potential for long-term investments. By combining 2 or more factors such as value, quality, low volatility, and momentum, multi-factor ETFs are the building blocks used by many investors to create a portfolio that will help provide more consistent outperformance.
These core Factor ETFs use unique methodologies that combine several factors and can provide:
Diversified exposure
Stronger core holdings
Potential to outperform
Fidelity's 4 unique core Factor ETFs provide investors with the building blocks to gain diversified exposure to certain portions of the equity market. They offer long-term growth potential, and are commission-free when purchased online.
NEW Fidelity® U.S. Multifactor ETF (FLRG)
Invests in U.S. companies that score well across value, quality, low volatility, and momentum factors
Fidelity® Small-Mid Multifactor ETF (FSMD)
Invests in small and mid-cap companies that score well across value, quality, low volatility, and momentum factors1
Fidelity® International Multifactor ETF (FDEV)
Invests in international companies that score well across value, quality, low volatility, and momentum factors, while providing a low correlation to US markets2
Fidelity® Emerging Markets Multifactor ETF (FDEM)
Invests in emerging market companies that score well across value, quality, low volatility, and momentum factors, while providing a low correlation to US markets2
Past performance is no guarantee of future results.
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 have looked 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 potential 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 High Dividend ETF (FDVV)
Targets high-dividend-paying large and mid-cap companies that are expected to continue to pay and grow their dividends
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.
Minimizing risk
Market downturns help 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:
Diversification during 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
Past performance is no guarantee of future results.
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
Learn about different types of ETFs, how they work, and the pros and cons of investing with them.
Learn the underlying investment philosophy behind factor investing.
Read about some of the advantages to trading ETFs vs. individual stocks.
