Fidelity is one of the leading brokerage firms that offers a wide range of low-cost ETFs. Investors can find ETFs that fit their risk tolerance, and they offer quick portfolio diversification. Some ETFs give you exposure to hundreds of publicly traded corporations.

Looking at an ETF’s stated objective plus its top holdings can help you decide if it’s the right fund for you. These are some of the best Fidelity ETFs for people who want passive income and growth during their retirement years.

Fidelity High Dividend ETF (FDVV)

The Fidelity High Dividend ETF (NYSEARCA:FDVV) combines a respectable 2.81% SEC yield with an annualized 13.1% return over the past five years. The fund invests in Magnificent Seven stocks that offer dividends, but that’s only a small percentage of the fund’s total assets.

FDVV has 103 equity holdings, and the top 10 holdings make up roughly 32% of the fund’s total assets. The ETF allocates 26.4% of its assets into the tech sector and is well-diversified. Industrials is the second largest sector, and it makes up 15.1% of total assets.

The fund only has a 0.16% expense ratio, which means you end up keeping most of your gains. The fund invests more than 90% of its total assets in North American companies.

Fidelity Dividend ETF for Rising Rates (FDRR)

The Fidelity Dividend ETF for Rising Rates (NYSEARCA:FDRR) aims to offer returns during periods of rising interest rates. However, it also performs well when rates aren’t high. The fund has a 0.16% expense ratio and a 2.18% SEC yield. Shares have generated an annualized 11.1% return over the past five years. 

Its top three holdings consist of Magnificent Seven stocks that offer dividends. Its exposure to trillion-dollar tech companies have contributed to long-term returns, but it remains well-diversified. The top 10 holdings make up 36% of the fund’s total assets, and one-third of the fund’s assets are allocated to tech stocks. Financial services and health care make up 15.2% and 10.2% of the fund’s total assets, respectively.

FDRR puts a strong emphasis on large-cap stocks. More than 80% of the fund’s capital is invested in large-cap companies. Small-cap stocks only have 3% of the fund’s total assets.

Fidelity International Value Factor ETF (FIVA)

The Fidelity International Value Factor ETF (NYSEARCA:FIVA)  has a 0.18% expense ratio and offers a 3.04% SEC yield. It invests in international companies and only puts 0.86% of its total assets into U.S. stocks. Investors who want a respectable yield and diversification away from U.S. equities may want to give this fund a closer look.

Companies in Japan, the United Kingdom, and France have the most representation in this fund. These three countries make up almost half of the fund’s total assets. Financials, industrials, and tech are the three largest sectors in the fund.

The fund has delivered an annualized 5.4% return over the past five years. You can find Fidelity ETFs with higher returns, but this fund does a great job of diversifying your portfolio. Investors may want to pair it with a Fidelity ETF that primarily invests in U.S. companies.

Fidelity MSCI Real Estate Index ETF (FREL)

The Fidelity MSCI Real Estate Index ETF (NYSEARCA:FREL) has a 0.084% expense ratio and a 12-month yield of 3.48%. The fund is filled with real estate investment trusts and puts 44% of its assets into the top 10 holdings. FREL prioritizes value stocks and equities that offer a mix of equity and growth. It only puts 2% of its assets into growth-oriented stocks. That leads to lower volatility.

The fund has delivered an annualized 2.9% return over the past five years. It’s also up by 11.4% over the past year. You may want to pair this ETF with a fund that spreads its assets across multiple industries. However, if you want exposure to numerous real estate firms, this fund is a pick to consider.

Fidelity Sustainable U.S. Equity ETF (FSST)

The Fidelity Sustainable U..S. Equity ETF (NYSEARCA:FSST) has a 0.59% expense ratio and a 0.51% SEC yield. It has delivered an annualized 12.2% return over the past three years, plus a 24.6% return over the past year.

This Fidelity ETF puts 41% of its capital into its top 10 holdings, and the top five companies are Magnificent Seven stocks. The fund puts 30.4% of its assets into the tech sector. Financials and healthcare are the next two sectors, and each of them make up more than 10% of the fund’s total assets. 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.