The Fidelity MSCI Information Technology Index ETF: A Decade of Impressive Growth
Investing in the Fidelity MSCI Information Technology Index ETF
Sometimes you have to sacrifice returns in exchange for safety -- but not always. Exchange-traded funds (ETFs) can offer you an easy way to gain exposure to a lot of stocks through just a single investment. But that doesn't mean you have to sacrifice good returns in the process.
Low fees but high returns
The Fidelity MSCI Information Technology Index ETF comes with a fairly light expense ratio of just 0.08%. That's important as higher fees can chip away at your returns over time. But that's not the case with this Fidelity fund, making it an attractive option for long-term investors.
- Growth-focused ETFs can generate strong, market-beating returns for investors while also providing excellent diversification.
- The Fidelity MSCI Information Technology Index ETF has risen in value by around 440% in the past 10 years, outperforming benchmarks like the S&P 500 and Invesco QQQ Trust.
Why has the Fidelity tech-focused fund done so well?
The risk, however, is that with valuations being high, the Fidelity fund may be vulnerable to a steeper correction if those heavily-weighted stocks falter. If your focus is on the long run, however, a sounder strategy may be for less concentration in just three stocks, which is why the Invesco fund and other options may be more appropriate for investors from here on out.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.