Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?

The Fidelity Nasdaq Composite Index ETF (ONEQ) was launched on September 25, 2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.The fund is sponsored by Fidelity. It has amassed assets over $8.59 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets. CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.21%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 0.57%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector -- about 50.2% of the portfolio. Telecom and Consumer Discretionary round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 12.62% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).The top 10 holdings account for about 60.83% of total assets under management.Performance and RiskONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The Nasdaq Composite Index is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange.The ETF return is roughly 12.61% so far this year and it's up approximately 26.98% in the last one year (as of 09/08/2025). In the past 52-week period, it has traded between $60.22 and $85.50.The ETF has a beta of 1.15 and standard deviation of 21.49% for the trailing three-year period, making it a medium risk choice in the space. With about 1026 holdings, it effectively diversifies company-specific risk.AlternativesFidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ONEQ is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $186.11 billion in assets, Invesco QQQ has $366.38 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks