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3 Fidelity ETFs To Diversify Your Portfolio In August

By Tezcan Gecgil/Investing.com ETFsJul 28, 2022 10:16
ng.investing.com/analysis/3-fidelity-etfs-to-diversify-your-portfolio-in-august-122330
3 Fidelity ETFs To Diversify Your Portfolio In August
By Tezcan Gecgil/Investing.com   |  Jul 28, 2022 10:16
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  • Despite stock market declines, 65 new ETFs were listed in Q2
  • Fidelity has over $30 billion in assets under management
  • 3 ETFs for investors looking to diversify portfolios

There are around 3,000 exchange-traded funds (ETFs) listed in the US with well over $6 trillion in assets under management (AUM). In the second quarter, 65 new ETFs were listed. BlackRock and Vanguard are the two largest ETF providers, and Fidelity is another leading asset manager with an AUM of over $30 billion in its ETFs.

1. Fidelity New Millennium ETF

  • Current Price: $28.24
  • 52-week range: $25.95 - $31.36
  • Dividend yield: 1.88%
  • Expense ratio: 0.59% per year

Our first fund is a non-transparent ETF, the Fidelity New Millennium ETF (NYSE:FMIL). Fund managers aim to identify early signs of long-term changes in the marketplace to invest in businesses that could benefit from potential opportunities. Such actively managed funds do not disclose their holdings daily.

FMIL Weekly
FMIL Weekly

FMIL, which tracks the S&P 500 TR USD Index, has 126 holdings. The fund was first listed in June 2020, and net assets stand at $52.5 million. Thus it is a relatively new and small fund.

Over a quarter of the portfolio is held in the leading 10 stocks. Among them are the energy giant Exxon Mobil (NYSE:XOM); natural gas group EQT (NYSE:EQT); healthcare heavyweight Bristol-Myers Squibb (NYSE:BMY); industrial giant General Electric (NYSE:GE), and Bank of America (NYSE:BAC).

FMIL has declined 5.3% year-to-date (YTD). By comparison, the S&P 500 index has lost 15.6%.

Trailing price-to-earnings (P/E) and price-to-book (P/B) ratios stand at 14.01x and 2.23x, respectively. We believe FMIL deserves further due diligence.

2. Fidelity NASDAQ Composite Index ETF

  • Current Price: $47.08
  • 52-week range: $41.42 - $63.11
  • Dividend Yield: 0.77%
  • Expense ratio: 0.21% per year

Next up is the Fidelity NASDAQ Composite Index ETF (NASDAQ:ONEQ), which tracks the returns of the NASDAQ Composite. The fund was launched in September 2003.

ONEQ Weekly
ONEQ Weekly

ONEQ currently has over 1,000 stocks. In terms of sub-sectors, we see information technology (IT) leading at 43.73%, followed by consumer discretionary (15.34%), communication services (15.26%), and health care (8.77%).

The top 10 stocks account for more than half of its net assets of $3.6 billion. Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) are among the leading holdings.

Those investors whose portfolios can handle short-term volatility could consider a growth-focused fund like ONEQ. So far in 2022, ONEQ has lost 22.6% of its value. P/E and P/B ratios are 20.49x and 4.65x.

Fidelity Small-Mid Factor ETF (FSMD)

  • Current Price: $31.96
  • 52-week range: $28.71 – $36.89
  • Dividend Yield: 1.55%
  • Expense ratio: 0.29% per year

Our final fund is the Fidelity Small-Mid Factor (NYSE:FSMD), which invests in small- and mid-cap companies stateside. The fund’s managers favor stocks with positive price momentum, solid financial metrics, and lower volatility than the broader market. The fund was launched in February 2019, and its net assets are $3.6 billion.

FSMD Weekly
FSMD Weekly

FSMD, which currently tracks the returns of the Fidelity U.S. Extended Investable Market Index, has 599 holdings. The leading 10 stocks make up less than 4% of the portfolio.

Industrials have the largest slice, with 16.82%. Next come financials (15.90%), IT (14.12%), health care (13.43%), consumer discretionary (12.15%), and real estate (7.76%).

Some top holdings include insurance company W. R. Berkley (NYSE:WRB); energy company APA (NASDAQ:APA); financial services group First Horizon (NYSE:FHN); defense contractor Leidos Holdings (NYSE:LDOS), and financial technology (fintech) group Jack Henry & Associates (NASDAQ:JKHY).

Since the start of the year, FSMD has lost about 10.6% of its value. Trailing P/E and P/B ratios are 10.96x and 1.98x, respectively. Readers looking to invest in small- and mid-caps could consider FSMD around these levels.

Disclaimer: On the date of publication, Tezcan Gecgil, Ph.D., did not have any positions in the securities mentioned in this article.

3 Fidelity ETFs To Diversify Your Portfolio In August
 

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3 Fidelity ETFs To Diversify Your Portfolio In August

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