5 ETFs to Invest In For Beginners

In this article, we discuss 5 ETFs to invest in for beginners. If you want to see more ETFs for those investors who are just beginning their trading journey, check out 10 ETFs to Invest in For Beginners.

5. Fidelity Value Factor ETF (NYSE:FVAL)

Fidelity Value Factor ETF (NYSE:FVAL) aims to track the performance of the Fidelity U.S. Value Factor IndexSM, which holds the large and mid-cap U.S. companies that have attractive valuations. The fund invests in 129 securities, offering a 30-day SEC yield of 1.50% and an expense ratio of 0.29%. 

One of the leading securities in Fidelity Value Factor ETF (NYSE:FVAL)’s portfolio is Alphabet Inc. (NASDAQ:GOOG), the parent company of Google and Google subsidiaries. On June 2, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Alphabet Inc. (NASDAQ:GOOG) but lowered the price target on the stock to $2,775 from $2,900. After a solid two-year streak, digital advertising spend seems to be normalizing, the analyst told investors. Group multiples have dropped and are 40% off recent highs, but history shows that multiples may not re-rate until after ad spend growth bottoms, added the analyst.

At the end of the first quarter of 2022, 160 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 158 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is one of the leading stakeholders of the company, with 2.3 million shares worth $6.6 billion. 

In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:

“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet Inc. (NASDAQ:GOOG), performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet Inc. (NASDAQ:GOOG) (Google) again with a margin of safety.”