With the end of the year on the horizon, investors often reflect on insights from the market’s performance. Three ETFs from Fidelity Investments can offer some notable takeaways as they are likely to end 2024 as the firm’s top ETF performers. The trio’s focus on large cap firms speaks to the overall story of the year. The way the Fidelity ETFs invested in those firms, however, is what stood out.
Three Fidelity ETFs' Take on 2024
The Fidelity Blue Chip Growth ETF (FBCG ) led the way, returning 45.5% for the year per Fidelity Investments data as of November 30th. The strategy, which charges 59 basis points (bps), actively invests in large cap U.S. firms with appealing earnings, growth potential and sustainable business models. Its active approach has helped it produce that performance, beating the S&P 500 YTD, according to YCharts data.
The Fidelity Communication Services Index ETF (FCOM ), meanwhile, offers a different approach. The strategy charges just eight bps to track the MSCI USA IMI Communication Services 25/50 Index. With many firms previously identified as tech names now in the communications space due to 2018 changes in the Global Industry Classification Standard (GICS) used by many index providers, the ETF benefitted from this year’s big tech push. Its ability to offer such a specific sleeve – featuring a mix of traditional and next-gen comms – could make it a satellite add to watch next year.
That helped the ETF return 40.37% over the last year per Fidelity Investments data as of November 30th. The strategy also far outpaced the S&P 500 YTD per YCharts.
Finally, the Fidelity Fundamental Large Cap Growth ETF (FFLG ) also merits a mention. The third-highest performer among Fidelity ETFs over the last one-year period per ETF Database data, FFLG charges a 38 basis point (bps). The fund assesses growth based on factors like earnings and revenue, also applying a quantitative portfolio construction process. Applying fundamental analysis, the fund can also invest in small and mid-cap names, though they are not its primary focus.
Looking Ahead
Together, these factors have helped the active fundamental ETF return 41.8% over the last year. According to YCharts, it has also outperformed the S&P 500 on a year-to-date basis.
Together, the three Fidelity ETFs point to the merits of low-fee, passive ETFs, and fundamentals-driven large-cap approaches. A new year may offer opportunities for both to boost investor portfolios, with ETFs’ trademark flexibility offering myriad possibilities for portfolio construction via ETF building blocks.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company, unaffiliated with VettaFi. There is no form of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the information herein. VettaFi LLC is the author and owner of these articles.
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