Exchange-traded funds (ETFs) have become a cornerstone of modern investing, offering diversification, low costs, and flexibility for both novice and seasoned investors. Fidelity Investments, a titan in the financial services industry with over $4.5 trillion in assets under management as of 2022, has carved out a significant presence in the ETF market. While Fidelity is renowned for its mutual funds, its ETF offerings—approximately 65 in the U.S. as of 2025—provide a compelling mix of passive and actively managed funds across various sectors, themes, and asset classes. For investors seeking growth over the next five years, identifying ETFs with strong historical performance, strategic focus, and alignment with emerging market trends is critical. This article explores Fidelity ETFs with the highest 5-year growth potential, analyzing their historical returns, investment strategies, and relevance in the evolving economic landscape.
Understanding Growth Potential in ETFs
Growth potential in ETFs is driven by several factors: the underlying assets, sector exposure, management style (active vs. passive), expense ratios, and macroeconomic trends. ETFs focused on growth typically invest in companies with above-average earnings or revenue growth, often in sectors like technology, healthcare, or consumer discretionary. However, growth investing carries risks, including higher volatility and sensitivity to market corrections. Fidelity’s ETF lineup includes both passive funds tracking broad or sector-specific indices and actively managed funds leveraging proprietary strategies to outperform benchmarks.
To assess 5-year growth potential, we’ll examine ETFs with strong historical performance, low expense ratios, and exposure to sectors poised for continued expansion, such as technology, communication services, and sustainable investing. The analysis draws on recent data, including 5-year annualized returns, sector allocations, and market trends as of July 2025. While past performance is not a guaranteed predictor of future results, it provides a foundation for identifying ETFs with robust growth characteristics.
Top Fidelity ETFs for 5-Year Growth Potential
Below, we highlight five Fidelity ETFs with strong 5-year growth potential based on their historical performance, sector focus, and alignment with long-term market trends. Each ETF is evaluated for its investment strategy, key holdings, expense ratio, and assets under management (AUM), with insights into why it may thrive over the next five years.
- Fidelity MSCI Information Technology Index ETF (FTEC)
Overview: The Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed fund tracking the MSCI USA IMI Information Technology 25/50 Index. With approximately 300 tech stocks, FTEC provides broad exposure to the U.S. technology sector, from mega-cap giants to smaller software firms.
Historical Performance: FTEC has delivered an annualized 5-year return of 19.6% as of April 2025, making it one of Fidelity’s top-performing ETFs over this period. Its focus on technology, a sector that has driven market gains over the past decade, underpins its strong track record.
Key Holdings: FTEC’s portfolio is heavily weighted toward mega-cap tech stocks, with top holdings including Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA), which collectively account for over 50% of the fund’s assets. This concentration in leading tech firms provides stability but also exposure to high-growth areas like artificial intelligence (AI), cloud computing, and semiconductors.
Expense Ratio: 0.08%—one of the lowest in its category, ensuring minimal drag on returns.
AUM: Approximately $10 billion, reflecting strong investor confidence and liquidity.
Growth Potential: The technology sector is expected to remain a growth engine over the next five years, driven by advancements in AI, cloud infrastructure, and 5G technology. FTEC’s low expense ratio and diversified tech exposure make it a strong candidate for investors seeking growth without excessive risk.
However, its heavy weighting in top holdings introduces concentration risk, which investors should monitor.
Why It Stands Out: FTEC’s passive strategy minimizes costs while capturing the tech sector’s growth. Its alignment with long-term trends like digital transformation and AI adoption positions it well for sustained performance.
- Fidelity Blue Chip Growth ETF (FBCG)
Overview: The Fidelity Blue Chip Growth ETF (FBCG) is an actively managed fund that invests in large-cap U.S. companies with above-average growth potential and sustainable business models. Launched in June 2020, FBCG has quickly gained traction for its performance-driven approach.
Historical Performance: FBCG returned 45.5% in 2024, outperforming the S&P 500, and has shown strong growth since inception. While its 5-year track record is shorter due to its recent launch, its annualized returns are competitive with top growth ETFs.
Key Holdings: FBCG’s portfolio includes familiar names like Nvidia, Microsoft, and Amazon (AMZN), alongside other growth-oriented firms like Broadcom (AVGO). The fund’s managers select stocks based on earnings growth, industry position, and management quality, resulting in a concentrated portfolio of about 200 holdings.
Expense Ratio: 0.59%, higher than passive ETFs but justified by its active management and outperformance.
AUM: Approximately $1.5 billion, indicating growing investor interest.
Growth Potential: FBCG’s active management allows it to adapt to market shifts, such as the rotation from mega-cap tech to broader growth opportunities. Its focus on blue-chip companies with strong fundamentals provides a balance of growth and stability, making it suitable for investors seeking long-term capital appreciation. The fund’s flexibility to invest in emerging trends, such as AI and clean energy, enhances its 5-year outlook.
Why It Stands Out: FBCG’s active strategy and focus on high-quality growth companies make it a standout for investors willing to pay a premium for potential outperformance. Its ability to beat the S&P 500 in 2024 suggests robust management and stock selection.
- Fidelity Fundamental Large Cap Growth ETF (FFLG)
Overview: The Fidelity Fundamental Large Cap Growth ETF (FFLG) is another actively managed fund, emphasizing large-cap and mid-cap U.S. stocks with strong growth metrics. It uses a quantitative approach to assess earnings, revenue, and fundamental characteristics.
Historical Performance: FFLG delivered a 41.8% return over the past year as of November 2024, outperforming the S&P 500. Its 5-year performance is less established due to its recent launch, but its short-term success signals strong growth potential.
Key Holdings: Top holdings include Apple, Microsoft, Nvidia, and Meta Platforms (META). The fund’s quantitative model prioritizes companies with high growth potential and attractive valuations, resulting in a portfolio of about 150-200 stocks.
Expense Ratio: 0.38%, lower than FBCG, offering a cost-effective active option.
AUM: Approximately $500 million, smaller but growing as the fund gains recognition.
Growth Potential: FFLG’s quantitative approach allows it to identify undervalued growth stocks, potentially capturing upside in a market where valuations are scrutinized. Its exposure to tech and communication services aligns with sectors expected to drive growth through 2030, particularly in AI, digital advertising, and cloud computing.
Why It Stands Out: FFLG combines active management with a lower expense ratio than FBCG, appealing to cost-conscious investors seeking growth. Its quantitative model reduces human bias, enhancing its ability to adapt to changing market dynamics.
- Fidelity Communication Services Index ETF (FCOM)
Overview: The Fidelity Communication Services Index ETF (FCOM) is a passively managed fund tracking the MSCI USA IMI Communication Services 25/50 Index. It focuses on communication services, including traditional telecom and next-generation firms in social media and 5G infrastructure.
Historical Performance: FCOM has benefited from the reclassification of tech-related firms into the communication services sector, delivering strong returns in 2024. While exact 5-year returns are not specified, its sector exposure suggests competitive performance.
Key Holdings: Top holdings include Meta Platforms, Alphabet (GOOGL), and Netflix (NFLX), reflecting a blend of traditional and modern communication firms. The fund holds about 100 stocks, with significant exposure to tech-adjacent companies.
Expense Ratio: 0.08%, matching FTEC’s low cost.
AUM: Approximately $1 billion, indicating moderate but stable investor interest.
Growth Potential: The communication services sector is poised for growth due to increasing demand for digital connectivity, streaming, and social media. FCOM’s low-cost structure and exposure to innovative firms make it a strong contender for 5-year growth, particularly as 5G and digital advertising expand.
Why It Stands Out: FCOM’s focus on communication services captures growth in a sector overlapping with technology, offering diversification beyond pure tech ETFs. Its low expense ratio enhances its appeal for long-term investors.
- Fidelity Enhanced Large Cap Growth ETF (FELG)
Overview: The Fidelity Enhanced Large Cap Growth ETF (FELG) is a passively managed fund tracking the Russell 1000 Growth Index, focusing on large-cap U.S. stocks with high growth characteristics.
Historical Performance: FELG has delivered an annualized 5-year return of 17.6%, driven by its exposure to growth-oriented large-cap stocks. Its performance is slightly below FTEC but competitive within its category.
Key Holdings: Top holdings include Apple, Microsoft, Nvidia, and Amazon, similar to other growth-focused ETFs. The fund holds about 200 stocks, providing diversification within the large-cap growth space.
Expense Ratio: 0.18%, higher than FTEC but lower than actively managed funds.
AUM: Approximately $3.3 billion, reflecting strong investor confidence.
Growth Potential: FELG’s focus on large-cap growth stocks aligns with market trends favoring established companies with strong earnings growth. Its exposure to tech and consumer discretionary sectors positions it well for growth in a stable economic environment.
Why It Stands Out: FELG offers a balance of growth and diversification, with a slightly higher expense ratio than FTEC but broader exposure than FBCG or FFLG. Its passive strategy ensures cost efficiency while capturing market upside.
Macro Trends Supporting Growth ETFs
Several macroeconomic trends support the growth potential of these Fidelity ETFs over the next five years:
Technological Innovation: The continued rise of AI, cloud computing, and 5G technology will drive demand for tech and communication services stocks, benefiting FTEC, FCOM, and FELG. Companies like Nvidia and Broadcom are at the forefront of these trends, with strong representation in these ETFs.
Active Management Flexibility: Actively managed ETFs like FBCG and FFLG can adapt to market shifts, such as rotations from mega-cap tech to mid-cap growth or emerging sectors. This flexibility is crucial in a potentially volatile economic environment.
Low Interest Rates and Economic Growth: While inflation and tariff concerns exist, the Federal Reserve’s rate cuts in 2024 suggest a supportive environment for growth stocks. Lower interest rates reduce borrowing costs for high-growth companies, enhancing their profitability.
Sustainability and ESG Investing: Fidelity’s sustainable ETFs, while not highlighted here, indicate a broader trend toward ESG (environmental, social, governance) investing. FBCG and FFLG’s focus on sustainable business models aligns with this trend, potentially attracting more capital.
Risks to Consider
While these ETFs offer strong growth potential, investors should be aware of several risks:
Concentration Risk: FTEC, FELG, and FCOM have significant exposure to mega-cap tech stocks, making them vulnerable to sector-specific corrections.
Market Volatility: Growth stocks are sensitive to interest rate hikes and economic slowdowns, which could impact returns.
Active Management Risk: FBCG and FFLG’s higher expense ratios and active strategies may underperform in certain market conditions.
Geopolitical and Trade Risks: Tariffs and trade policies, particularly under the second Trump administration, could disrupt global supply chains, affecting tech and communication sectors.
Conclusion
Fidelity’s ETF lineup offers a range of options for investors seeking growth over the next five years. The Fidelity MSCI Information Technology Index ETF (FTEC) stands out for its low cost and broad tech exposure, while the Fidelity Blue Chip Growth ETF (FBCG) and Fidelity Fundamental Large Cap Growth ETF (FFLG) leverage active management to target high-growth opportunities. The Fidelity Communication Services Index ETF (FCOM) captures the dynamic communication sector, and the Fidelity Enhanced Large Cap Growth ETF (FELG) provides a balanced, passive approach to large-cap growth. Each ETF aligns with key growth drivers—technological innovation, active management flexibility, and economic trends—while offering diversification and competitive costs.
Investors should assess their risk tolerance, investment horizon, and portfolio goals when selecting these ETFs. Combining FTEC or FCOM for sector-specific exposure with FBCG or FFLG for active management could create a robust growth-oriented portfolio. As always, thorough research and consultation with a financial advisor are recommended to ensure alignment with individual financial objectives. With Fidelity’s reputation for innovation and performance, these ETFs are well-positioned to capitalize on the growth opportunities of the next five years.