Fidelity launches new factor ETFs and funds

Toronto-based Fidelity Investments Canada ULC has expanded its suite of mutual funds and ETFs with the Fidelity Low Volatility and Fidelity High Quality Factor ETFs and mutual funds, which began trading Thursday on the Toronto Stock Exchange.

Fidelity says that demand for investment solutions like its Fidelity Dividend Factor ETFs (which target high-quality dividend-paying companies and seek to deliver monthly income) has only grown since September 2018, when those were launched, and these new strategies expand the options for investors.

Fidelity Low Volatility Factor ETFs and mutual funds aim to generate market-like returns over time with lower volatility, Fidelity says, such that they “may be used as a core holding in a portfolio for risk-averse investors or as a tactical position to minimize drawdown during periods of heightened volatility.”

Fidelity High Quality Factor ETFs and mutual funds provide single-factor exposure to high-quality companies with strong balance sheets and stable cash flows, Fidelity says, and are suitable for investors looking for long-term stability and performance.

The funds track indices designed by Fidelity Management & Research Company.

The new ETFs and mutual funds (Series F) will have management fees ranging from 0.35% to 0.45%.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.