Investing in high-dividend stocks can be a solid strategy for making your money work more effectively. When a company does well, it often shares some of those profits with shareholders as cash dividends. But, stock investing isn’t without risks—there’s no assurance that a company will continue paying dividends. So, if you’re after a more secure and budget-friendly way to grow your investment, you might want to look into exchange-traded funds (ETFs).
With countless ETFs available, targeting a quality one that outperforms the S&P 500 might lead you to Fidelity ETFs. They have a longstanding reputation for reliability and a diverse array of options. Here are three ETFs that stand out to me.
The Fidelity Blue Chip Growth ETF (FBCG) focuses on well-established companies known for growth. This fund zeroes in on large-cap, high-growth U.S. firms with solid financial health. It’s holding 373 stocks, and its expense ratio sits at 0.61%.
Interestingly, FBCG devotes 48% of its investments to the information technology sector, featuring top-tier companies like Nvidia, Microsoft, and Apple among its top ten holdings. Those ten stocks represent 61% of the portfolio, showcasing how the booming tech sector fuels impressive revenue growth.
As long as the technology market thrives, this ETF is likely to do well too. Over the past year, it has averaged a 17.17% return, jumping to 32.19% over three years. Beyond tech, the fund also allocates about 16.25% to consumer discretionary and 15.73% to communication services.
If you’re in the market for long-term growth and don’t mind a tech-heavy lineup, FBCG could be a fantastic pick. Sure, its expense ratio isn’t the lowest, but it’s one of the finest investments available within the S&P 500, up 16.54% recently and trading at $54.53. I genuinely believe this upward trend could extend into 2026, with potential returns that might surpass the S&P 500.
Another noteworthy ETF from Fidelity is the Fidelity MSCI Information Technology Index ETF (NYSEARCA:FTEC), which follows the MSCI USA IMI Information Technology Index. This fund focuses on reputable IT companies that many investors recognize.
The fund holds 291 stocks, fully benefiting from the tech sector. The top ten holdings make up about 58% of its portfolio, including major players like Nvidia and Apple. With FTEC, you essentially gain broad tech exposure without needing to buy individual stocks.
Additionally, you can tap into established businesses with a single investment. It tends to allocate the most to semiconductors (36%), with software and hardware making up the rest. FTEC hasn’t just surpassed the S&P 500; it’s outperformed it by a significant margin. In the last year, it rose 23% and is currently trading around $222.96, with a notable 100% return over five years. The dividend yield stands at 0.38%, which isn’t much, but it could still enhance your total returns. Its expense ratio is a very low 0.084%.
Over one and three years, FTEC has averaged returns of 22.09% and 34.31%, respectively. Though it’s slightly more volatile compared to the S&P 500, which adds a layer of risk, the current climate for tech stocks suggests that FTEC could be a solid choice.
To build a resilient portfolio, considering geographic diversification is crucial. Ultimately, this can help capitalize on global economic growth over the long term. Although U.S. stocks have historically outperformed their global counterparts, things could shift. Enter the Fidelity International High Dividend ETF (FIDI)—an excellent way to achieve diversification.
This fund invests in 115 stocks globally, focusing on companies with strong dividend yields while tracking the Fidelity International High Dividend Index. It primarily invests in large and mid-cap firms with a solid ability to increase dividends, presenting a yield of 4.34% and an expense ratio of 0.19%.
FIDI allocates the most to the financial services sector, followed by consumer defense and basic materials. Its top ten holdings comprise about 25.5% of its assets and include names like Enel SpA and Nestlé. Currently, it trades at $27.15, having appreciated 35% in the past year, with an annual return averaging 38.70% over one year and 17.50% over three years.
If passive income is what you’re after, FIDI likely won’t let you down.
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