The 3 Best Fidelity ETFs to Buy in December

One of my retirement investing platforms happens to be Fidelity, so I've been diving deeper into which exchange traded funds (ETFs) may fit my risk profile and investing time horizon better than others of late. And while I do use other platforms as well such as Vanguard for my investing accounts, I have noticed that some Fidelity ETFs have underlying fundamentals that are on par with the Vanguard options I typically opt for.

Quick Read

• Fidelity Large Cap Growth ETF (FELG) charges 0.18% and focuses on quality metrics alongside market-cap weighted growth stocks.

• Fidelity Total Bond ETF (FBND) offers diversification across Treasury and corporate bonds with a 0.36% expense ratio.

• Fidelity Wise Origin Bitcoin Fund (FBTC) provides direct Bitcoin exposure for investors seeking growth potential.

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So, for those on the Fidelity platform, or others simply looking for a platform-agnostic option to diversify their holdings across asset classes and a range of stocks, here are three excellent options to choose from right now. I've specifically highlighted three ETFs I think are worth buying in December for those with a three to 12-month investing time horizon (shortening up on my bat for this one).

Let's dive in!

Fidelity Large Cap Growth ETF (FELG)

Investors who have not held a market weighting in large-cap growth stocks have undoubtedly underperformed the broader indices in recent years. So, for those looking to either get up to a full weighting in this grouping of stocks, the Fidelity Large Cap Growth ETF (FELG) is an excellent option to consider.

This ETF provides investors with exposure to most of the large-cap names which have driven the market to new all-time highs seemingly on a monthly basis over the course of recent years. And with so much of the economy now tied up in just a few stocks, there are plenty of investors who believe that remaining concentrated in these names is simply the way to go. After all, that's where all the growth in earnings is realistically coming from today (and there's reason to believe this dynamic can continue over time).

With an expense ratio of 0.18%, and an investing strategy which is partly tied to quality metrics, makes this top ETF one worth considering for those seeking market-cap weighted exposure to a wide range of growth stocks in today's ever-changing economy.

Fidelity Total Bond ETF (FBND)

I'm not going to sugar coat it - risks are broadly rising in most major markets, as pressure on the consumer and a weakening jobs market provide an earnings growth picture which is downright uncertain for many companies in consumer-facing industries.

That said, for those anticipating some sort of market decline, or are betting on interest rates falling (which are often correlated), holding some portfolio insurance via a top bond ETF such as the Fidelity Total Bond ETF (BND) can be a great choice.

In my view, both long and short duration bonds are likely to perform well over the next five years, so I'd be looking for exposure to both assets. In my personal portfolio, I do hold exposure to a wide range of durations, mostly in U.S. Treasurys.

This ETF provides that duration mix, as well as a mix of bond types (Treasurys, corporates, and other bonds) which provide additional diversification. This diversification does come at a cost (due to the fact that bonds are harder to rebalance than stocks), with FBND charging an expense ratio of 0.36%. But for the diversification and portfolio security this ETF provides, I think this investment is well worth the cost here.

Fidelity Wise Origin Bitcoin Fund (FBTC)

Okay, now for a much more speculative pick on this list. And again, this would be aimed at investors with more of a three month - one year investing time horizon.

The Fidelity Wise Origin Bitcoin Fund (FBTC) is, as its name suggests, a top exchange traded fund invested entirely in Bitcoin. Given Bitcoin's recent decline from its peak (and what appears to be the start of a reversion rally higher), I am of the opinion that investors looking to amplify their growth potential can do so by holding some small allocation to Bitcoin here.

For many investors, this may be a long-term position, and I do think some amount of FBTC or similar ETF can be held for the long-term. But I would personally be looking at a full portfolio weighting for this fund over the course of the next year to try to capture a melt up rally. In essence, I view a combination of FBND and the portfolio insurance this fund provides and FBTC and the capital appreciation upside potential of this fund as balancing each other out.

Trying to predict where Bitcoin will head over any short-term time horizon is difficult, and this is a position that's probably best suited for those with the willingness and ability to sit on their hands for decades. That said, I do also expect a near-term rally in digital assets, so this is a pick that made this list right now (and I'm also sure it's one of the most-watched Fidelity ETFs out there for this reason).

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