Exchange-traded funds (ETFs) provide investors the opportunity to gain exposure to their desired asset class with the benefits of diversification and lower risk. Today, we will focus on two Fidelity ETFs – Fidelity Yield Enhanced Equity ETF (FYEE) and Fidelity Crypto Industry and Digital Payments ETF (FDIG) – with an upside potential of over 10%, according to analysts.
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Let’s take a deeper look at these two ETFs.
Fidelity Yield Enhanced Equity ETF (FYEE)
The Fidelity Yield Enhanced Equity ETF aims to earn current income while maintaining prospects for capital appreciation. It generally invests at least 80% of assets in equity securities of companies having a market cap that is similar to companies in the S&P 500 Index (SPX) or Russell 1000 Index.
The FYEE ETF has $6.86 million in assets under management (AUM). It has an expense ratio of 0.28%. FYEE has risen more than 15% over the past year. Currently, Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT) are the top three holdings of FYEE ETF.
Analysts have a Moderate Buy consensus rating on FYEE ETF. Of the 158 stocks held in the ETF, 132 have Buys, 24 have a Hold rating, and two have a Sell rating. At $30.32, the average FYEE ETF price target implies about 11% upside potential.
Fidelity Crypto Industry and Digital Payments ETF (FDIG)
The Fidelity Crypto Industry and Digital Payments ETF tries to replicate the investment returns of the Fidelity Crypto Industry and Digital Payments Index. This ETF generally invests at least 80% of assets in equity securities included in the Fidelity Crypto Industry and Digital Payments Index and in depositary receipts representing securities included in the Index. The companies in this Index are engaged in activities related to cryptocurrency, blockchain technology, and digital payment processing.
The FDIG ETF has $150.72 million in assets under management (AUM). It has an expense ratio of 0.40%. FDIG has risen more than 28% over the past year amid the optimism in the crypto space, especially after Donald Trump’s win in the U.S. presidential elections. Currently, Coinbase Global (COIN), Marathon Digital (MARA), and Cleanspark (CLSK) are the top three holdings of FDIG ETF.
FDIG earns a Strong Buy consensus rating on TipRanks. Of the 41 stocks held in the ETF, 32 have Buys, while nine have a Hold rating. At $45.36, the average FDIG ETF price target implies about 28% upside potential.
Concluding Thoughts
ETFs are an attractive way to gain exposure to an asset class and lower the risk through diversification. Investors looking for ETFs with lucrative upside can consider FYEE and FDIG ETFs.
