Top 3 Fidelity ETFs to Consider Buying in December

As year-end approaches, investors often reassess portfolios for tax planning, rebalancing and positioning for next year. Fidelity offers a broad lineup of low-cost ETFs that can serve different roles: growth exposure, income generation and core diversification. Below are three Fidelity ETFs to consider this December, with a focus on how each might fit into a diversified portfolio.

1) Fidelity MSCI Information Technology ETF (FTEC)
FTEC provides concentrated exposure to the information technology sector, making it a candidate for investors seeking growth and innovation exposure. Technology remains a key driver of earnings growth and long-term secular trends such as cloud computing, artificial intelligence and semiconductor advancement. Use FTEC to tilt a portfolio toward higher growth potential, but be mindful of elevated volatility and sector concentration risk.

2) Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
FDIS targets consumer discretionary companies that can benefit from stronger consumer spending and cyclical rebounds. This ETF can complement a growth sleeve by capturing brands and services that tend to outperform during economic expansions. Consider modest allocations to FDIS for investors anticipating continued consumer resilience, while keeping an eye on valuation and sensitivity to interest-rate shifts.

3) Fidelity MSCI Health Care ETF (FHLC)
FHLC offers exposure to healthcare — a defensive sector with long-term demand driven by demographics and innovation in biotech and medical services. Investors seeking stability, lower correlation to cyclicals and potential defensive ballast can look at a healthcare ETF like FHLC. It may help smooth portfolio returns during market turbulence while still offering growth from pharmaceuticals and medical technology.

Allocation and positioning
A simple approach for December rebalancing: allocate a core holding (e.g., a broad-market or healthcare ETF) for stability, a growth-oriented slice (technology or consumer discretionary) for upside, and a smaller satellite allocation for income or defensive exposure. Position sizes should reflect risk tolerance, time horizon and tax considerations for year-end moves.

Risks and next steps
ETF selection should account for expense ratios, tracking error, liquidity and how each fund complements existing holdings. This overview is for informational purposes and not investment advice. Consult a financial advisor or do further due diligence before making trades, especially when making year-end portfolio adjustments.