TORONTO, June 10, 2020 /CNW/ - Fidelity Investments Canada ULC ("Fidelity"), one of Canada's top investment management firms, today launched a new suite of factor-based investment options with new Value and Momentum Index ETFs to complement its existing suite of High Dividend, Low Volatility and High Quality Factor-based strategies. Fidelity also announced the launch of Fidelity Global Investment Grade Bond ETF and ETF Fund from fixed income experts Jeff Moore and Michael Plage. The ETFs will commence trading today on the Toronto Stock Exchange.
"We are excited to introduce these two new factors which builds out the Fidelity Factor ETF lineup," said Kelly Creelman, Senior Vice President, Products, Fidelity Investments Canada ULC. "By adding Value and Momentum to the suite that includes High Dividend, Low Volatility and High Quality, this gives investors and advisors a full complement of factors to use as portfolio construction tools. Additionally, these new factors have low correlations with other factors, which may be helpful during these times of market volatility."
New Fidelity Factor ETFs
Fidelity's new Value Index ETFs are designed for investors who are looking for a systematic approach to value investing, targeting stocks that are priced cheaply relative to their fundamentals with potential to outperform over the long-term.
Fidelity Canadian Value Index ETF (FCCV): Fidelity Canadian Value Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada Canadian Value Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization Canadian companies that have attractive valuations.
Fidelity U.S Value Index ETF (FCUV): Fidelity U.S. Value Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Value Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies that have attractive valuations.
Fidelity U.S. Value Currency Neutral Index ETF (FCVH): Fidelity U.S. Value Currency Neutral Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Value Currency Neutral Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies that have attractive valuations and uses derivatives to try to minimize the exposure of currency fluctuations between the U.S. and Canadian dollars.
Fidelity International Value Index ETF (FCIV): Fidelity International Value Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada International Value Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization foreign companies that have their principal business activities or interests outside of Canada or the U.S. and that have attractive valuations.
Fidelity's new Momentum Index ETFs are designed for investors who are looking for a systematic approach to momentum investing, capitalizing on positive returns and investor sentiment with potential to outperform over the medium-term.
Fidelity Canadian Momentum Index ETF (FCCM): Fidelity Canadian Momentum Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada Canadian Momentum Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization Canadian companies that exhibit positive momentum signals.
Fidelity U.S. Momentum Index ETF (FCMO): Fidelity U.S. Momentum Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Momentum Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies that exhibit positive momentum signals.
Fidelity U.S. Momentum Currency Neutral Index ETF (FCMH): Fidelity U.S. Momentum Currency Neutral Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Momentum Currency Neutral Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies that exhibit positive momentum signals and uses derivatives to try to minimize the exposure of currency fluctuations between the U.S. and Canadian dollars.
Fidelity International Momentum Index ETF (FCIM): Fidelity International Momentum Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada International Momentum Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization foreign companies that have their principal business activities or interests outside of Canada or the U.S. that exhibit positive momentum signals.
The Value and Momentum ETFs are competitively priced with management fees ranging from 0.35% to 0.45%.
For more information, visit fidelity.ca/etfs
New Active Fixed Income ETF and ETF Fund
Fidelity is also launching Fidelity Global Investment Grade Bond ETF (FCIG) and Fidelity Global Investment Grade Bond ETF Fund ("ETF Fund") from fixed income experts Jeff Moore and Michael Plage. It offers investors an unconstrained approach from a geographic perspective, a tactical strategy with a combination of investment-grade and high-yield debt and the benefits of active management in an ETF vehicle.
"This fund builds off the success of Global Core Plus Bond ETF (FCGB), also actively managed by Jeff Moore and Michael Plage. It's been one of the top-selling active ETFs in Canada since its launch in September 2019," said Creelman. "Our clients told us that they're interested in a version of FCGB for more risk-averse investors, so we're thrilled to bring FCIG to the market to meet this need."
Fidelity Global Investment Grade Bond ETF (FCIG) aims to be a core fixed income solution that provides exposure to a broad global opportunity set. It invests globally in high-quality investment grade fixed income securities, with a maximum 25% exposure to non-investment grade. This compares to Fidelity Global Core Plus Bond ETF (FCGB), which can have a maximum 70% exposure to non-investment grade.
Fidelity Global Investment Grade Bond ETF (FCIG) is also available in a competitively priced mutual fund version. ETF management fee is priced at 0.50%. The ETF Fund, Series F management fee is 0.50% and Series B management fee is 1.00%*.
* The ETF Fund also pays a fixed administration fee and certain fund costs as described in the Fund's simplified prospectus. For more information, visit fidelity.ca/fixedincome
About Fidelity Investments Canada ULC
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals.
As a privately-owned company, our people and world class resources are committed to doing what is right for investors and their long-term success. Our clients have entrusted us with $141 billion in assets under management (as at May 31, 2020) and they include individuals, financial advisors, pension plans, endowments, foundations and more.
We are proud to provide investors a full range of domestic, international and global equity and income-oriented mutual funds, ETFs, asset allocation strategies, managed portfolios, sustainable investing products and a high net worth program. Fidelity is available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies.
Read a fund's prospectus and consult your financial advisor before investing. Mutual funds, including exchange-traded funds, are not guaranteed; their values change frequently, and past performance may not be repeated. Investors will pay management fees and expenses, may pay commissions or trailing commissions and may experience a gain or loss.
Find us on social media @FidelityCanada
SOURCE Fidelity Investments Canada ULC
Chris Pepper, Vice-President, Corporate Affairs, Fidelity Investments Canada ULC, T: (416) 307-5388, M: (416) 795-7762, E: [email protected]
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