Kate Stalter at U.S. News reviewed seven Fidelity ETFs across equity, fixed income and thematic strategies, noting that active ETFs now show up in 38% of incoming portfolios, a big jump from prior years. She asked me how I actually use some of these funds with clients.
On the bond side, the Fidelity Total Bond ETF is a core fixed-income holding I use with clients who want broad bond exposure without building a ladder themselves. It does the diversification work across Treasuries, corporates and mortgage-backed securities in one line item.
On the bitcoin ETF, I have had clients in their late 50s ask about it, and my answer is usually the same: what is your thesis, and what happens to your plan if it goes to zero? For younger accumulators with genuine conviction and long time horizons, I can construct a case for a small allocation. For someone three years from retirement, I cannot.
On the high-dividend fund, my caution was about labels. I have had clients think they own a conservative equity fund because it pays a dividend, then look at the holdings and realize it is more cyclical than they thought. A dividend is a payout policy, not a risk rating. Read the holdings, not the name.
Read the full article at US News & World Report →
