Investing in dividend-paying stocks is one way to make your money work for you. As companies grow, they generate higher profits and share a portion with shareholders as cash dividends. Stocks do carry risk, however, and there is no guarantee that any company will keep paying. If you want a low-cost, diversified way to put your money to work, exchange-traded funds (ETFs) offer a compelling alternative.
There are hundreds of ETFs to choose from, but Fidelity has built a particularly strong lineup with a track record that spans both growth-oriented and income-focused strategies. Here are three Fidelity ETFs worth a close look for investors seeking to outpace the S&P 500.
Fidelity Blue Chip Growth ETF
An actively managed fund, Fidelity Blue Chip Growth ETF (NYSEARCA:FBCG) targets large-cap, high-growth companies with stable balance sheets. The fund launched in June 2020 and aims to generate strong returns by concentrating in the top U.S. blue-chip stocks. It holds 373 positions and carries an expense ratio of 0.61%, which is above average for the ETF category but reflects the cost of active management.
The information technology sector receives the largest allocation at roughly 49%, and the fund’s top 10 holdings, which include NVIDIA, Microsoft, Netflix, Meta Platforms, Apple, and Alphabet, account for about 61% of the portfolio. Consumer cyclical stocks make up around 17% of assets, with communication services close behind at roughly 17% as well. The tech-heavy composition is what has powered the fund’s strong historical performance.
FBCG has delivered a 1-year trailing return of 17.70% and a 3-year average annual return of 30.87%, easily clearing what a broad S&P 500 index fund would have returned over the same periods. The fund’s 52-week share price range stretches from $43.25 to $61.58, reflecting how closely its fortunes track sentiment in high-growth technology. FBCG stands out as one of the better actively managed growth ETFs for investors comfortable with a concentrated, tech-leaning portfolio and a longer time horizon.
Fidelity MSCI Information Technology Index ETF
For investors who want pure, passive exposure to the technology sector at a minimal cost, Fidelity MSCI Information Technology Index ETF (NYSEARCA:FTEC) is one of the most efficient vehicles available. The fund tracks the MSCI USA IMI Information Technology 25/50 Index and is another standout option from Fidelity’s ETF shelf, with an expense ratio of just 0.08%.
The fund holds 281 stocks, all allocated to the information technology sector, so investors capture the full upside of tech with a single position. The top 10 holdings, which include NVIDIA, Apple, Broadcom, Palantir, Advanced Micro Devices, and Oracle, represent roughly 58% of the portfolio. Semiconductors carry the largest sub-sector weight at 36%, followed by software at 31% and hardware, storage, and peripherals at 17%.
FTEC has been trading around $293 per share, up sharply from the $222.96 level noted at the time this article was first published. The fund’s 52-week range runs from approximately $184 to $301, illustrating both the volatility and the reward that come with concentrated tech exposure. Its 30-day SEC yield stands at 0.44%, which is modest but still contributes to total return. Notably, Fidelity’s own March 2026 fact sheet puts the fund’s 3-year beta at 1.00, meaning its volatility has tracked the broader market much more closely than earlier estimates suggested.
A hypothetical $10,000 invested in FTEC at the fund’s inception in October 2013 had grown to roughly $68,576 by March 2026, according to Fidelity’s own published data. That kind of compounding over a decade-plus speaks to what a low-cost, sector-focused index fund can do for patient investors.
Fidelity International High Dividend ETF
A well-rounded portfolio extends beyond U.S. borders, and geographical diversification has become a more pressing consideration in 2026 as stretched domestic valuations have pushed some investors toward international markets. That is the case for Fidelity International High Dividend ETF (NYSEARCA:FIDI), which focuses on developed-market stocks outside the United States that carry above-average yields and the capacity to grow those payments over time.
The fund tracks the Fidelity International High Dividend Index and holds approximately 115 positions, selecting large- and mid-cap companies based on dividend yield, a low payout ratio, and a history of dividend growth. The expense ratio is 0.18% per the fund’s February 2026 prospectus, a small fee for the diversification benefits on offer. The annualized forward dividend yield runs near 3.76%, making it a practical choice for income-oriented investors.
Financial services represent the largest sector allocation at 34%, with consumer defensive stocks at about 14% and basic materials at roughly 13%. The top 10 holdings account for approximately 25.5% of the portfolio and include names such as Enel SpA, Nestlé, Rio Tinto, Brookfield Renewable, British American Tobacco, and National Grid. That spread across geographies and sectors is the core of FIDI’s appeal.
Shares have moved up to around $28, well above the $27.15 level at the time of initial publication, and the fund’s 52-week range runs from $22.45 to $28.94. The 1-year return stands at approximately 30.4% and the 3-year average annual return is 19.1%, both of which comfortably clear the broader S&P 500 benchmark. For passive income investors who also want meaningful capital appreciation, FIDI delivers on both fronts.
Editor’s note: This article has been updated to reflect current pricing and performance data across all three funds, including FIDI’s corrected expense ratio of 0.18% (revised from 0.19%), FTEC’s revised 3-year beta of 1.00 and updated yield of 0.44%, and refreshed 1-year and 3-year return figures for FBCG, FTEC, and FIDI.
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