Warren Buffett has long preached the virtues of long-term investing. Buying for the long haul provides plenty of advantages, especially when it comes to compounding and minimizing tax implications. Right now, two Fidelity ETFs seem perfectly designed to provide maximum returns over a long time horizon.
Every investor should own this asset
Most investors don't own any cryptocurrency. And there's good reason for that. Volatility makes most cryptocurrency investments unviable for those seeking safe and reliable returns.
Plus, the process of buying and selling cryptocurrencies like Bitcoin can be far too complicated for most people. That's why the Fidelity Wise Origin Bitcoin Fund (FBTC 4.42%) is so attractive. For an expense ratio of just 0.25%, investors can get direct exposure to the crypto without the complex tasks of self-custody and tax tracking.
It can take a lot of education to wrap your head around cryptocurrencies and their potential. The industry is rife with misinformation and misleading promises. But Bitcoin, arguably the original cryptocurrency, is a proven and relatively simple asset. Think of it as digital gold.
There are only so many bitcoins in circulation at any given time. And while there is some marginal inflation over time, its total supply is capped, just as there is only so much gold in the ground to dig up.
To be sure, the crypto has significantly more volatility than gold. But it arguably has more upside as well. Its total market capitalization right now is around $2.2 trillion. Gold's total market cap, meanwhile, is above $23 trillion.
So compared to gold, Bitcoin could have 1,000% more upside to go. And that doesn't even include its value as a transactional currency, an advantage gold is fairly limited in.
Expect a lot of volatility here, but investing even just 1% of your assets into Bitcoin might boost your portfolio's total upside potential significantly. Fidelity's Wide Origin Bitcoin Fund makes adding that exposure as easy as buying any other exchange-traded fund (ETF).
If you're looking for high growth potential with traditional stocks, however, check out the promising new ETF below.
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This Fidelity ETF has high upside potential
Looking to maximize your chances for long-term growth? Consider the Fidelity Cloud Computing ETF (FCLD 0.86%). It's relatively new and shouldn't replace broad market indexes like those that track the S&P 500. But there's no denying that it could add huge long-term potential to any portfolio.
As its name suggests, the Fidelity Cloud Computing ETF invests primarily in businesses that operate cloud computing infrastructure, like Oracle and Microsoft. It also invests in cloud software-as-a-service (SaaS) stocks like Salesforce.
Cloud computing is perhaps one of the biggest sectors that will benefit from the AI revolution. The United Nations predicts that the market will grow from $189 billion in 2023 to nearly $5 trillion by 2033. Much of that value will accrue to cloud computing businesses. Why? It has everything to do with how AI is trained and deployed.
Artificial intelligence requires a lot of computing power. Instead of building this infrastructure themselves, most developers and businesses outsource it to cloud infrastructure businesses like Microsoft's Azure division.
And when it comes to using AI features, most of them will be deployed via cloud SaaS like Salesforce. From hardware to software, cloud computing businesses will benefit strongly from rising AI demand, which is expected to increase at more than 30% per year for the next decade or more.
Fidelity's Cloud Computing ETF isn't perfect. It does have a relatively high expense ratio of 0.4%. And betting on a single sector isn't for every investor. But if you're looking to build a portfolio with high long-term potential without the complexity of managing individual positions, this ETF looks like a reasonable bet.
