Fidelity Nasdaq Composite Index ETF (ONEQ): A low-cost passive fund to diversify in US stocks

The investment in ONEQ seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index.

Written by Sunil Dhawan

February 14, 2022 16:39 IST

opportunity to invest in top US stocks, Nasdaq Composite Index ETF, ONEQ, expense ratio, US stock market, international stocks, Nasdaq 100, Passively Managed ETF

For those who wish to diversify across the tech and financial sector, ONEQ is the exchange-traded fund to look at.

Fidelity Nasdaq Composite Index ETF (ONEQ) gives you an opportunity to invest in top US stocks such as Apple, Microsoft, Amazon, Tesla, Alphabet, Meta Platforms, NVIDIA amongst others and yet gives investors an exposure to financial stocks. For those who wish to diversify across the tech and financial sector, ONEQ is the exchange-traded fund (ETF) to look at.

Unlike Nasdaq 100 which does not have any exposure to financial stocks, the Nasdaq Composite Index Nasdaq Composite Index comprises stocks from major industries such as Oil & Gas, Basic Materials, Industrials, Consumer Goods, Health Care, Consumer Services, Telecommunications, Utilities, Financials and Technology. The technology stocks dominate almost half of Nasdaq Composite Index weightage, with close to 20%, the consumer services sector ranks second, while health care is third at almost 10%. Next in line are consumer goods, financials, and industrials, with allocations of 7.61%, 6.61%, and 6.09%, respectively.

The investment in ONEQ seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index. ONEQ is a Passively Managed ETF with the NASDAQ Composite TR USD as its Benchmark Index. Fidelity Management & Research Company LLC is the sponsor of ONEQ and the inception date of the ETF is September 25, 2003. As on January 31, 2022, Net Assets were a total of $4.4B with a net expense ratio of 0.21%.

Diversification remains the best possible move to keep your investment portfolio hedged against volatility. By diversifying across sectors and market capitalization, exposing portfolio to international stocks brings in geographical diversification to an investor.

The US stock market provides one of the best access to the global stocks and stocks listed on the Nasdaq Composite index can be a good starting point to invest abroad. To invest in all the stocks of Nasdaq Composite index, one may consider buying Fidelity Nasdaq Composite Index ETF (ONEQ) with a long term view of investing in a passive fund at low cost.

This article was first uploaded on February fourteen, twenty twenty-two, at thirty-nine minutes past four in the afternoon.