The Fidelity Crypto Industry and Digital Payments ETF (FDIG) offers investors a way to gain exposure to the growing world of cryptocurrency and digital payments without directly buying Bitcoin or other digital currencies. Launched in April 2022, FDIG tracks the Fidelity Crypto Industry and Digital Payments Index, which invests in companies involved in cryptocurrency mining, blockchain technology, and digital payment processing.
FDIG is a passively managed ETF, meaning a team of managers doesn't try to pick the best-performing companies. Instead, the ETF automatically buys and sells holdings to mirror the underlying index. This approach offers diversification across multiple sectors, potentially reducing risk compared to directly investing in a single cryptocurrency. As of March 31, 2024, the ETF held shares in 39 companies, with over half (54.63%) concentrated in the information technology sector. Other significant sectors include financials (45.25%) and a mix of smaller allocations across other areas.
The expense ratio for FDIG is 0.39%, which is slightly higher than some traditional ETFs but reasonable for a niche thematic ETF like this. Investors should be aware that the ETF is still relatively new and has a limited track record. The price of FDIG will fluctuate based on the performance of the underlying companies, which can be volatile due to the evolving nature of the cryptocurrency and digital payments industries.