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Investing in sectors with passive ETFs
Fidelity helped to pioneer sector investing in 1981 when it launched its first actively managed sector fund. Today, Fidelity's lineup of sector products includes a suite of exchange traded funds (ETFs) that covers all 11 sectors of the U.S. equity market.
Now includes companies from the information technology and consumer discretionary sectors.
Fidelity sector ETFs are indexed to the MSCI® USA Investable Market Index (IMI) Sector Indices. These indices include large-, mid-, and small-cap U.S. stocks covering up to 99% of the free-float-adjusted market capitalization of the U.S. equity market. All securities in the indices are classified in the corresponding sector according to the Global Industry Classification Standard (GICS®) framework.
- Fidelity MSCI Communication Services Index ETF (FCOM)
- Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
- Fidelity MSCI Consumer Staples Index ETF(FSTA)
- Fidelity MSCI Energy Index ETF (FENY)
- Fidelity MSCI Financials Index ETF (FNCL)
- Fidelity MSCI Health Care Index ETF (FHLC)
- Fidelity MSCI Industrials Index ETF (FIDU)
- Fidelity MSCI Information Technology Index ETF (FTEC)
Key features of passive ETFs
ETFs trade like stocks on an exchange. You can:
- Buy and sell shares throughout the day1
- See current market prices anytime during the day
- Set stop, limit, and other order types
Expense ratios for many passive ETFs are low compared to actively managed investment options.2 ETFs that track indices have:
- Low fund turnover that generally results in minimal transaction costs
- Fewer capital gains, and capital gains that are realized only upon sale of shares
- Fidelity has among the lowest-priced sector ETFs available, with an expense ratio of just 0.084%.2
Passive ETFs typically publish holdings and their weights daily. This information may help you:
- Know the positions and their weights in the ETF and the index
- Identify overlap across your portfolio
- Limit strategy drift
- 1. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
- 2. Expense ratio is the fund's total annual fund operating expenses as available in each fund's prospectus and represents the expenses that you pay each year as a percentage of the value of your investment. Any applicable brokerage charges are not included in the expense ratio.
- ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.
- Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Because of their narrow focus, sector funds tend to be more volatile than funds that diversify across many sectors and companies. Each sector fund is also subject to the additional risks associated with its particular industry.
- Investing involves risk, including risk of loss. You may gain or lose money over time. For fund-specific risks, go to each fund's detail page.
- Information provided is general in nature. It is not intended, and should not be construed as, legal or tax advice. Fidelity does not provide legal or tax advice. It is not possible to invest directly in an index. All market indices are unmanaged.
- Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated company.