The world is a fast-changing place, and Fidelity Investments wants to help keep today’s investors at the forefront of new opportunities by offering four exchange-traded thematic funds that focus on growing trends.
Fidelity announced today that its self-indexed and passively managed ETFs are now trading on the Cboe BZX Exchange and are available commission-free through Fidelity’s online brokerage platforms. They are:
- Fidelity Clean Energy ETF (FRNW)This fund reflects the performance of companies that “distribute, produce or provide technology or equipment to support energy production from solar, wind, hydrogen and other renewable sources,” Fidelity says.
- Fidelity Cloud Computing ETF (FCLD): This fund reflects the performance of companies that “provide products or services that enable increased adoption of cloud computing.”
- Fidelity Foundation for Digital Health (FDHT)This fund reflects the performance of companies that provide “health care records management, connected health care devices, surgical robots, telemedicine, and other technology-enabled health care products and services.”
- Fidelity Electric Vehicles and Future Transportation ETF (FDRV): This fund reflects the performance of companies that “are engaged in the production of electric and/or self-driving cars and their components, technologies, or energy systems, or are involved in other initiatives aimed at changing the future of transportation.”
With the addition of these funds, Fidelity now offers 33 thematic mutual funds and ETFs.
In a press release, Fidelity cites Morningstar research that indicates that assets under management in thematic funds more than tripled during the three-year period ending March 31, 2021. They now total $595 billion globally.
Thematic investing mainly allows you to invest in long-term trends and topics.
Learn how to invest well
Before you rush to buy stocks in Fidelity’s new ETFs, make sure you understand what you’re getting into.
For starters, it is important to understand the difference between investing in mutual funds and ETFs. Stacey Johnson, founder of Money Talks News, reviews the basics in Should I Invest With ETFs?
It’s also important to understand how Fidelity’s new ETFs may or may not fit into your overall individual investment strategy. If you feel lost when sorting through your options, consider enrolling in a Money Talks News course Make money simple.
Stacey teaches this online course, which features lessons in 13 key financial topics that feature short, easy-to-watch videos, as well as jargon-free articles and worksheets.
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