Best Fidelity Sector Fund Etfs of 2019  πŸ“ˆ (Top Performing Fidelity Etf Sector Funds)

Updated : Sep 03, 2019 in Articles

Best Fidelity Sector Fund Etfs of 2019 πŸ“ˆ (Top Performing Fidelity Etf Sector Funds)


what is going on my internet family? It
is so good to see all of you! In today’s video we’re gonna cover the top for
fidelity sector index ETF funds of 2019 this is a subscriber requested video and
I greatly appreciate the subscriber who requested this topic and I always
appreciate hearing your guys feedback and the video ideas you want to hear
about it helps me as a content creator so thank you very much for sharing that
I’m gonna start the video right now but if you would do me a huge favor if you
enjoy the video drop a like down below and leave a comment as well it really
helps support the channel and helps us information and reach more and more
people real quickly guys I wasn’t too happy with the Ellie’s website on when
doing this analysis now this spreadsheet took me a while to make probably a
couple hours but the what I found is that fidelity has two main views when it
comes to looking at their investments you get a very if you don’t have an
account setup with them or you’re not you don’t have any sort of login with
them then you’re gonna get a very limited access to the information if you
want to use their research tools and analysis you they actually want you to
now create a guest login account I’m not sure how long it’s been that way but it
looks like this so in order to access the information that you’re gonna see on
the spreadsheet I had to create a guest login account which is only good for 30
days which is kind of frustrating you have to do that but if you want to see
these investments in more detail I would suggest you create a guest login account
and go from there we’re gonna talk about the investments
now but real fast let me show you how this spreadsheet works that I’ve put
together for you on the left-hand side are the links that will take you
directly to the webpage that discusses each particular sector fund and I’ve
listed out all 11 sector funds right here if you’re new to investing if you
don’t know this is that the stock market is actually made up of 11 primary
sectors and these different sectors encompass the each chunk of the stock
market think of it as a big pie well each sector fund is a piece of that pie
that makes up the total stock market and on the right-hand side as we go to the
right you’re gonna notice I have the ticker symbols that you can search each
investment and where you can search using each investment and then I have
the average annual returns once again that’s the average annual return for
each investment from the year-to-date perspective one year five years in the
lifetime of these sector funds which we’re going to cover in more detail in
just a little bit for sake of time because there’s 11 funds and I don’t
have time to cover all eleven with you and nor I don’t I don’t think you guys
would want to see me go through that is I’m just gonna be covering the top three
or four sector funds for this video and feel free to research the rest on your
own but I want to talk about a few of the general things regarding sector
funds real quickly if you’re new to investing I think it’s a great way to
learn about the stock market and with the sector funds you can learn what the
biggest players are or who the biggest players are within each sector of the
economy as we go through this as you’re gonna see so it’s a great way to not
only learn about the stock market learn who what who some of the most successful
companies are who’ve been around for a long time
but also you’re going to be able to with sector funds so you can easily diversify
your portfolio and manage your risk now for me personally now this is just me
but what I try to do as an investor is I try to not whether I’m investing in
individual company stocks which I do or in ETFs which I do as well
sometimes is that I never want to invest for this is just me more than 15% of my
total portfolio in one sector because in order to be truly diversified
you want to have not only different investments but you want to hold
investments within different sectors if you want to really differentiate the
first sector fund I want to point out for you guys is the consumer
discretionary index ticker symbol FD is your to date return it’s about twenty
four percent 52-week return or one-year return has been about eight percent
five-year return average is 12 percent per year lifetime return is about 12
percent per year and just so you guys know the returns listed here they’re not
guaranteed at any given point the economy could turn and these returns
could the numbers could go down right there’s no guarantee that you’re gonna
get these returns every year so you have to always keep that in mind
but since we’ve been in the bull market for such a long time the numbers on
pretty much every every sector have been pretty pretty substantial maybe except
with the one exception being energy which has been lagging for quite some
time now down at the bottom of the spreadsheet I’ve included tabs that
cover each investment this is all from the fidelity website what I’ve done is
I’ve summarized everything from there and I place it all in one easy-to-read
spreadsheet so you can get the gist of all these investments if you want to
learn more about them definitely check out the fidelity website itself or go on
Yahoo Finance or use another investing research platform to access this
information now the consumer discretionary index what you’re gonna
find is that per share of this etf it’s about 47 dollars per share the each of
these does have a small dividend yield but it’s only about 1% so it’s not it’s
not huge but it’s something the expense ratio I believe on every single one of
these sector funds is it’s gonna be about less than 1% our point zero eight
four and if I scroll down here let’s see what this is made up of so this is made
up of companies I’m sure you’re gonna recognize its number one holding is
Amazon Home Depot followed by McDonald’s Starbucks Nike Lowe’s booking Holdings
Inc t.j.maxx General Motors and Target all in all this one fund owns about 300
different companies so not only are getting good exposure to the sector but
you’re getting diversification as well what fidelity does on their webpage is
what’s pretty cool is that not only that they talk about the sector but they give
you the industry exposure so within each sector sectors are made up of industries
ok so every sector is made up of industries Vannelli also does some sort
of analysis I don’t know how they arrived at this but their short term and
long term a two-year sentiment is strong so they think fidelity thinks this
investment or these type of companies they’re gonna do well over the next two
years it’s what do you mean by that another thing I really like that
fidelity does is that they actually show you on their page who their competitors
are so so here’s fidelity right here and then it shows you what are similar ETFs
from other investment firms or other investment companies like Vanguard so
vanguards consumer discretionary ETF is VCR and you can see how it stacks up
against Vanguard so this is kind of cool I like that they do this and I always
recommend before you invest in an ETF or stock or whatever definitely take a look
at some of its competitors it’s well worth your time and you’re gonna get a
better understanding of how that sector and how that industry works
the next sector fund as I want to look at the information technology index
formation technology index has excelled this year ladies gentlemen at 31% dang 52-week return is about twelve percent
five-year return average is about seventeen percent per year lifetime is
about eighteen percent and I will point out that I think these sector funds have
been around for about ten years or less so they’re each of these index funds are
fairly new but also they’ve done quite well in that short time period you can
buy a share of this information technology index around sixty five
dollars per share and just so you know that the research on these investments
on this spreadsheet was done around 718 of 2019 so July 18th is when I pulled
all this information together there is a small dividend yield of one percent
expense ratio is the same as last one what companies does this thing hold
let’s scroll down over here we see that this thing holds Microsoft Apple visa so
every time people are swiping that credit card
this thing’s making money Cisco Systems mess
ricard intel Adobe Oracle PayPal IBM and it has three hundreds holdings and all a
325 Holdings at all so you get great exposure to the information technology
sector as well as getting diversification just like the other ones
fidelity according to their analysis or whomever they’re using here for this
analysis they think technology fund is going to excel even further into the
future I know we’re going kind of fast guys
but that’s on purpose because I don’t I want to make this video as short as
possible but deliver the information that I think you need to hear as quickly
as possible real estate index ETF is the next one that has been performing
outstanding for 2018 with a twenty two and a half percent return excellent
one-year return is about fifteen percent and this thing has been around for less
than five years so what you’re gonna find
with fre LR frill as I call it is let me go to the tab is it’s basically consists
primarily of real estate investment trusts that’s what this thing holds and
real estate investment trusts are companies that hold properties and they
are required to distribute by law ninety percent of their earnings to their
shareholders okay so ninety percent of their earnings from these rental
properties this thing holds has to be distributed to the shareholders of of
these companies or these ETF well so what you’re gonna find because of that
you’re gonna this thing has a higher yield and its yield is 3.0 five percent
which is not bad and let me scroll down here it’s only twenty six twenty seven
dollars per share right now roughly as of July 18th of 2019 and if we go down
here we can see its top holdings so this Holdings good for somebody who
wants income okay this is one of the ones I would recommend there’s it holds
American Tower Corp crown Castle International Corp Pro logis which I
don’t know what that is Simon Property Group at Equinix Inc public storage here
in America we like to fill our garages full of stuff and just have more things
than we need so what we what do we do we need to stick it in some place like
public storage so it holds that which has a monthly rental income from it well
Tower Avalon Bay communities which has done very well over the past four years
I think it’s doubled or tripled its is value Equity Residential and SBA
Communications Corp and as you guys can see 95% of these holdings are invested
in real estate investment trusts just like I mentioned a moment ago long-term
sentiment and strong so fidelity thinks that over the next few years this thing
is going to continue to well maybe not so much in the next nine months but in
the long run fidelity is rooting for this one if they think it’s gonna do
well so the competitor if you want to compare this against Vanguard vanguards
version of this is V and Q and you can see how they stack up here one thing I
forgot to point out is that you’ll notice that says buy online commission
free if you want to do your investing through fidelity there’s many
investments through the platform you can get for free so that every time you make
you place an investment you’re not incurring transaction fees which is nice
but you don’t have to you don’t have to invest in fidelity or you don’t have to
have a fidelity platform I should say in order to invest in these things you can
use any platform you want to participate in these different sector funds the last
ETF I want to cover with you guys is the Industrial Index ETF so last year they
had a twenty three percent rate of return which was fantastic one-year
return I sorry I said mean the year-to-date
one-year return is about ten percent five-year average is nine percent and
lifetime return so far in this ETF is ten percent the ticker symbol on the
industrials index is F IDU F IDU and there is a small yield on this of one
point six three percents small but at least it’s something
and who is involved what are the main companies that make up this sector and
this ETF well some of the main players include companies like Boeing Honeywell
International Union Pacific Corp United Technologies Corp Triple M Lockheed
Martin and Lockheed Martin is the largest defense contracting company I
believe in the world they make weapons they make those cool f1 fit or the cool
the fighter jets and all that stuff that’s what they make General Electric I
almost said f-150 caterpillar ups our United Parcel Service and CSX Corp and
there’s three hundred forty-one different holdings with with this so
there’s a lot of a lot of diversification here within within this
who’s its main competitor on the Vanguard side so if you want to invest
in something similar if you’re a vanguard investor look at V is V is an
FDI are an F I D you for fidelity industry exposure so the industries that
are part of this sector fund include aerospace and defense Machinery
industrial conglomerate some road and rail there’s air lines there’s
transportation infrastructure so there’s all these different industries that make
up this industrial sector alright so that was a quick overview of the four of
the best performing sector ETF fidelity funds of 2019 so I hope you guys found
that helpful remember like I said make sure you click the blue links over here
you’re probably gonna have to create a customer login as a guest to order to
see them in more detail like what I’m showing you here because that in order
to get these graphics and visuals I had to create a guest login account so I
think you’re gonna have to do the same if you want to research this more but I
just want to convey a few final thoughts here that I think you should take into
consideration with these things so what I found now I’ve made several videos on
ETFs and mutual funds and stocks and investments in general and I will
continue to do so but what I found is that in generally speaking that the some
of the best investments are the best type of etf sector funds being invested
in our information technology consumer discretionary and the healthcare
industry what I’ve noticed is that over the lifetime of these different funds in
terms of how long they’ve been around currently that eighteen that the
information technology sector fund is the best performer and that’s typically
true what I’ve noticed with other investment platforms as well even with
Vanguard I typically find that information technology is almost
hands-down over the last 40 years the way to go if you want to achieve the
highest rate of returns it’s just like you would put the money in and forget it
and that’s what’s nice with these different ETFs and sector funds is that
you can not only get good knowledge a good grasp of what the stock what makes
up the stock market what sectors make up the stock market what what company
make up these different sectors and industries and you can easily diversify
your portfolio this way and if you want to have something in addition to the
sp500 sector funds are a great way to do this if you’re looking for income I
would definitely look at the real estate invest you know real estate index ETF if
you’re wanting income if you’re looking for also if you’re looking for income I
would look at the financials index ETF usually those index are those sectors
offer higher yields you might also find decent yields within the utilities index
if you’re looking to if you’re you’re concerned about where the stock markets
headed in the next few years definitely look at consumer staples I think those
can do well if our economy turns south right now we’re breaking all-time record
highs in the stock market but who knows how much longer that’s gonna last this
bull market has been going for like ten years strong I don’t know how much
longer you can last so if you want to hedge your beds I’d look at consumer
staples because consumer staples and this is FSTA holds companies like
Procter & Gamble coca-cola Pepsi Walmart thinks people are gonna need in a good
or bad economy the other thing you can look at in terms of hedging your risk
there if we have an economic downturn is look at sectors like utilities which is
fut Y so let me go down here to fut Y and because regardless of what our
economy is doing good or bad we’re gonna need services we’re gonna
need energy yes we’re gonna need a look you know you know electricity or water
all those kind of things so I think you look at utilities as well and
historically utilities hasn’t done that bad
utilities right now is lagging this year a little bit but historically they offer
on average about a 10% rate of return per year so it’s not bad and plus you’re
gonna get somewhat of a dividend yield from usually from a utility sector as
well these sectors that have lagged this year or in the past year I should say
definitely energy energy has been hit hard
I know oil has been much much lower for years now and
that’s that’s a big part of why energy has lagged and especially as we’re
transitioning from fossil fuels more into renewable sources of energy so
there’s a lot of changes going on there so look for that so I think the energy
index fund is still that sector’s probably you can still find a lot of
value there however I’m not sure when it’s going to rebound it’s been down for
a quite some time but something to keep your eye on the other thing to keep your
eye on is the communication services index a lot of the big tech companies
have moved over from the information technology sector over to communication
services let me show you what I mean real fast with that and let me it’s f
comm f co M so what you’re gonna notice now is over in in these communication
services use you know you now you have companies like Facebook and Google
Disney 80 which we used to be there anyways
Netflix Comcast Verizon companies like that so that’s what you’re gonna find if
you want to invest in these kind of companies if you really understand them
if you like them then look at the fidelity communication services sector
ETF last thing I want to point out real quickly is that look at the healthcare
index ETF is I’ve noticed they’ve lagged a little bit they usually do better and
over the past 52 weeks over the past year they’ve only gone up about 5% but
be looking at that because I think there’s a lot of growth potential in the
future for the healthcare index fund I think what holds it back is there still
a lot of uncertainty with how insurance is gonna play out
I know the current administration is looking to change how healthcare how we
go about healthcare in America and the party after that’s probably going to
look at that as well but there’s the pharmaceutical companies there’s there’s
there’s hospitals there’s the you know like I said the big drug manufacturers
within that medical equipment medical services that’s what makes up this
healthcare ETF definitely health insurance company so let me just go to
that real quick FH LC and you’re gonna see that’s here we go so Johnson &
Johnson major drug manufacturer and Medical Supply Company United Health
Group Pfizer which I own murk Abbot laboratories we have AB V all
these different companies that make up this healthcare sector about four three
hundred and sixty four Holdings at all so that was a quick and dirty rundown of
these different sector funds I hope you guys found that helpful
like I said make make sure you consider these in regards to your other
investments don’t over rely on one given sector but definitely you can learn from
these different funds and learn more about the companies involved with them
that’s really gonna help you alright ladies and gentlemen I’m gonna wrap with
a video here I hope you got a lot out of this I hope this gives you a good
overview and got you got we’re able to get the information you need all
summarized in one place took me a couple hours to produce the spreadsheet so yeah
I hope you guys found it valuable it’s completely free to make sure so make
sure to download it if you enjoyed the video today make sure you hit the red
subscribe button down below to not miss any of our future uploads in smash that
like button I’ll see you guys down in the comments I look forward to reading
everything you have to say and tell then have a great week and live your life on
Kage see you in the next one guys pace

22 Comments

  • The spreadsheet in the video can be downloaded here: https://www.dropbox.com/s/nv04j9wpv2efhnn/Top%20fidelity%20sector%20etfs%202019.xlsx?dl=0

  • Time Stamps so you jump to, or rewind to key points in the video.

    0:47 – Fidelity Site

    2:00 – What are Fidelity Sector Fund etfs?

    3:03 – Why Sector Funds Are Awesome!

    4:08 – Consumer discretionary index fund

    7:15 – Information Technology Index

    8:55 – Fidelity Real esate Index etf

    11:39 – Fidelity Industrial Index Etf

    13:58 – Other Fidelity Sector Funds and final thoughts.

  • Hope you enjoy this subscriber requested video. Thanks for all the suggestions please keep them coming. I have an ongoing list with a lot of topics to produce videos on thanks to all of you πŸ™‚ To support the channel please drop a Like, or comment below. Subscribe to the channel for future videos to continue to learn about finances, investing and taxes, etc. Happy Sunday everyone πŸ™‚

  • They are performing well, but I realized that by investing in the high performers, my portfolio was not as diversified as it should be. I also got into the habit of buying high based on the glory of past returns. Many of the companies in the sector funds are the highest contributors to other funds.

    So I have started to switch to index funds/ETFs. It is not easy to consciously trade off returns for a bit more portfolio security.

    But, I don't need to beat the S&P 500, and historically speaking it's unlikely that I would be able to do so anyway.

  • I started investing through Fidelity in the early 1960s, as I lived in Boston 3/4s of my life, and my 1st job out of college was across the street from Fidelity HQ, . Don't recall why now, nut in 1973 switched 100% to Vanguard and have no complaints. Only regret I have is not having taken advantage of ROTHs when they first became available anw now our Uncle takes a big bite. Have consistently maintained a 60/40 split between 3 or 4 sectors and high yield low Beta stocks. I thoroughly enjoyed & benefited from this high speed review of Fidelity. πŸ’΅ πŸ’΅ πŸ’΅ πŸ’΅ πŸ’΅

  • Great video again!! Am learning something new everyday. I have a question to ask, is a section funds the same as a close-end funds ?

  • Great breakdown Mike! I am actually moving away from Fidelity just due to fees but ETFs are usually fairly low cost. What do you think of the Gold ETF (GLD)? Ray Dalio coming out with his thoughts and suggests it. The REIT ETF like you mentioned is a good place to diversify for income as well, love it

  • Correction on my earlier comment: I was TOTALLY wrong on the expense ratios of Fidelity Sector ETFs. I was looking at the Fidelity Sector Mutual Funds, not the Fidelity Sector ETFs, for their expense ratios. All Fidelity Sector ETFs have a VERY good expense ratio of 0.08% which is actually less than Vanguard's Sector ETFs at 0.10%-0.12%. Right now, I'm going to make two M1 Finance Pies, one with the 11 Fidelity Sector ETFs and one with the 11 Vanguard Sector ETFs. I'm going to put $10,000 in each portfolio and see which does better over time (1, 3, 5, 10, 20 years). Thanks so much for making this video! It's really good!

  • Hi Mike. Was going to reach out to see if you'd be interested in doing a collab but couldn't find your email address. Mine is on my about page so email me if you're interested. Talk soon.

  • Maybe instead of trying to buy a little of each of the out performing sectors just but the whole market. I mean if you’re going 15% IT and not go over the s&p itself has that. I guess if you want to buy s&p and overweight in IT or CT. is this what you’re doing?

  • You can actually check the yearly average return for nearly anything traded by looking at Split History ( https://www.splithistory.com/?symbol=fdis ). I use this all of the time when I'm analyzing one stock versus another. No login account is needed. It displays a chart that shows what a $10,000 investment would have done over time.

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