The world is a fast-changing place, and Fidelity Investments wants to help keep today’s investors on the cutting edge of new opportunities by introducing four thematic exchange-traded funds that focus on growing trends.
Fidelity announced today that the passively managed, self-indexed ETFs now trade 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 the production of energy 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 enabling the increased adoption of cloud computing.”
- Fidelity Digital Health ETF (FDHT): This fund reflects the performance of companies that provide “healthcare records management, connected healthcare devices, surgical robotics, telemedicine, and other technology-enabled healthcare 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 autonomous vehicles and their components, technology, or energy systems or engaged in other initiatives that aim to change 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 indicating that assets under management in thematic funds more than tripled during the three-year period that ended March 31, 2021. They now total $595 billion globally.
Thematic investing essentially allows you to invest in long-term trends and themes.
Learn how to invest well
Before you rush off to purchase shares in Fidelity’s new ETFs, make sure you understand what you are getting into.
For starters, it is important to understand the distinction between investing in mutual funds and ETFs. Money Talks News founder Stacy Johnson runs down the basics in “Should I Invest With ETFs?”
It is also crucial to understand how Fidelity’s new ETFs might — or might not — fit into your overall individual investing strategy. If you feel adrift when sorting through your options, consider enrolling in the Money Talks News course Money Made Simple.
Stacy teaches this online course, which has lessons on 13 key financial topics featuring short, easy-to-watch videos, as well as jargon-free articles and worksheets.
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