The 3 Best Fidelity ETFs That Could Make You Richer Than Vanguard

When people talk about building wealth with ETFs, the conversation usually centers around Vanguard and Schwab. That makes sense. Vanguard gave us heavy hitters like VOO, VTI, and VGT, while Schwab fans love SCHD and SCHG.

But there’s one name that often gets overlooked: Fidelity.

Even though Fidelity ETFs haven’t been around as long as the big dogs, they’re quietly building a powerful lineup that rivals — and in some cases outperforms — the competition.

Here are the 3 Best Fidelity ETFs that could make you rich, and they could be better than the Vanguard alternatives. 

1. FELC – Fidelity Enhanced Large Cap Core ETF

This is Fidelity’s new smart beta spin on the S&P 500. Instead of just passively tracking the index, FELC uses quantitative analysis to pick stocks it believes have the best chance to outperform. They take a look at the valuation, profitability, and the performance of a wide range of stocks to create this ETF. 

The fund’s inception was technically in 2007, but it was not listed on the market until November of 2023. A lot of data can be derived from the Fidelity website, but as a newer ETF on the market it has less date with price returns. 

Here are a few things that make this ETF special.

What Makes It Special:

• Launched: November 2023 (brand new!)
• Expense Ratio: 0.18% (higher than VOO/SCHB, but reasonable for enhanced indexing)
• Holdings: ~217 companies
• Top Sectors: 34% Tech, 14.5% Financials
• Top Holdings: Nvidia, Apple, Microsoft
• Top 10 Weight: Only ~37% of the portfolio = more diversification

Performance

Since inception on the market in 2023, FELC has outperformed the S&P 500 by over 3% — an impressive start. While past performance isn’t a guarantee, it shows promise as a core ETF if you’re looking for something a little more strategic than vanilla VOO.

If we were to use the returns from Fidelity since the inception of this ETF in 2007, then we would find that FELC has outperformed the S&P 500 in the last three to five years, with the S&P 500 doing a tad bit better in the ten year average. 

The three year average was 9.21%, the five year average was 18.92%, and the ten year was 12.26%. For an ETF that tracks 200 plus companies on the S&P 500, it has a pretty good performance overall. 

2. FTEC – Fidelity MSCI Information Technology ETF

If you love tech but don’t love paying $600+ for Vanguard’s VGT, then FTEC is your friend.

It tracks the same index as VGT (MSCI US Investable Market Information Technology Index), but with lower fees and a much more affordable share price.

FTEC may not have the largest name in the market for tech ETFs, but it certainly has a great performance and a good portfolio. We often think of XLK and VGT being top dogs, but FTEC is a great one to buy and hold for the long term. 

Quick Stats:

• Expense Ratio: 0.08% (cheaper than VGT’s 0.09%)
• Holdings: 293
• Top Holdings: Nvidia, Microsoft, Apple
• Price: ~$182 (vs VGT’s $600+)

Performance

Over the 1-, 3-, and 5-year time frames, FTEC has slightly edged out VGT in returns. With a 5-year average return of 19.45% and a 10-year average of 19.54%, this ETF has the potential to build serious long-term wealth.

If you are looking for a great tech ETF that is cheap, has a great performance, and is made by Fidelity then look no further than FTEC. 

3. FDVV – Fidelity High Dividend ETF

If you want income and growth, look no further than FDVV. This ETF focuses on high-yielding dividend stocks — and it’s beating some of the best in the game. Most people think of SCHD as being the best in the business, but FDVV is getting a lot of love. It is hard to deny with their great performance and a solid yield. 

 By the Numbers:

• Expense Ratio: 0.16%
• Dividend Yield: 3.02% (better than VYM’s 2.86%)
• Holdings: 124
• Top Names: Microsoft, Nvidia, Apple, Procter & Gamble, Coca-Cola

Performance

FDVV has a 5-year average return of 17.37%, significantly higher than Vanguard’s VYM, which averaged 13.46% over the same period. It is hard to beat with a better performance and yield.

That combination of strong dividend income + capital appreciation makes FDVV a powerful choice for long-term investors. If you are looking for a good dividend ETF from Fidelity that outshines past Vanguard, then look no further that FDVV.

Final Thoughts: Don’t Sleep on Fidelity

Fidelity may not get the same spotlight as Vanguard or Schwab, but their ETFs are competitive, cost-effective, and in some cases, outperforming their peers. The ETFs may be a bit newer on the market, but they are making a splash. 

Whether you want:

• A smart core ETF like FELC
• Tech growth with FTEC
• Or high-yield dividends with FDVV…

Fidelity gives you a toolkit to build wealth with confidence. Start investing today.