This article is sponsored by Fidelity Investments Canada ULC. All opinions are mine.
Fidelity Investments Canada ULC recently launched one new active ETF and three ETF series of their existing mutual funds.
Compared to passively managed ETFs, active ETFs give investors access to professionally managed portfolios, and a potential to achieve higher returns over time.
This review of the Fidelity Active ETF and ETF series covers their holdings, fees, returns, and more.
Fidelity Active ETFs and ETF Series
The four Fidelity Active ETF/ETF series are:
- Fidelity Global Innovators® ETF
- Fidelity Canadian Large Cap Fund – ETF Series1
- Fidelity Greater Canada Fund – ETF Series1
- Fidelity Global Small Cap Opportunities Fund – ETF Series1
These funds are listed on Cboe Canada and can be bought and sold through a brokerage account or financial advisor.
Fidelity Global Innovators® ETF (FINN)
Key facts for FINN as of August 11, 2023*:
- Inception date: May 19, 2023
- Management fee: 0.85%
- Net assets: $52.2 million
- Eligible accounts: Registered and non-registered investment accounts.
The Fidelity Global Innovators® ETF invests primarily in equity securities, directly or indirect by investing in Fidelity Global Innovators® Investment Trust, of companies located anywhere in the world that have the potential to be disruptive innovators.
This ETF has a medium-to-high risk. As of June 30, 2023, its top ten holdings included Nvidia, Microsoft, Oracle, Alphabet, Netflix, Meta Platforms, and Uber Technologies. The ETF’s investments will change.
Performance data cannot be shown as the fund is less than one year old.
FINN has a 0.85% annual management fee, equivalent to an $85 fee per $10,000 invested. This fee does not include operating expenses and trading costs.
It is also offered in US dollars under the ticker FINN.U.
Learn more about the fund.
Fidelity Canadian Large Cap Fund – ETF Series (FCLC)1
Fidelity Canadian Large Cap Fund is a Fidelity mutual fund that now offers an ETF series.
Key facts for FCLC as of July 31, 2023*:
- Inception date: May 19, 2023
- Management fee: 0.85%
- Net assets: $6.786 billion (aggregate, all series)
- Eligible accounts: Registered and non-registered investment accounts.
FCLC invests primarily in Canadian and foreign large cap equity securities. It may invest up to 49% of its net assets in foreign securities.
It targets companies that the portfolio manager believes to be undervalued by the market.
The Fidelity Canadian Large Cap Fund has a medium risk rating and is diversified across several industry sectors and countries.
As of June 30, 2023, its top ten holdings included Metro, Rogers Communication, Loblaw, Fortis, Dollarama, Alimentation Couche-Tard, and CGI. The ETF’s investments will change.
Like FINN, the returns to date for FCLC cannot be shown at this time. Both funds have the same management fee at 0.85%.
Learn more about the fund.
Fidelity Greater Canada Fund – ETF Series (FCGC)1
Fidelity greater Canada Fund is another Fidelity mutual fund that now offers an ETF series.
This fund uses a contrarian strategy that aims to identify value in out-of-favour stocks. It invests primarily in Canadian and foreign equity securities of small, medium and large companies.
Key facts for the fund as of July 31, 2023*:
- Inception date: May 19, 2023
- Management fee: 0.85%
- Net assets: $3.628 billion (aggregate, all series)
- Eligible accounts: Registered and non-registered investment accounts.
FCGC has a medium risk rating and is diversified across sectors and countries.
As of June 30, 2023, its top ten holdings included Canadian Pacific Kansas City Limited, Brookfield Corporation, Electronic Arts, Rogers Communication, Lightspeed, and CSX. The ETF’s investments will change.
Like FCLC and FINN, FCGC has a 0.85% management fee. The fund’s performance data cannot be shown until one year after its inception.
Learn more about the fund.
Fidelity Global Small Cap Opportunities Fund – ETF Series (FCGS)1
Fidelity Global Small Cap Opportunities Fund is another Fidelity mutual fund that now offers an ETF series.
It invests primarily in global small cap equities and looks for mispriced investment opportunities where the market has under-reacted to positive change or over-reacted to negative change.
Key facts for FCGS as of July 31, 2023*:
- Inception date: May 19, 2023
- Management fee: 0.85%
- Net assets: $218.1 million (aggregate, all series)
- Eligible accounts: Registered and non-registered investment accounts.
FCGS has a medium risk rating and is diversified across several countries and sectors.
As of June 30, 2023, its top ten holdings include KIRBY CORP, SNC-Lavalin Group, Demant, Valvoline Inc., CSW Industrials, and FTI Consulting (as of June 30, 2023). The ETF’s investments will change.
Like the other active ETF series on this list, FCGS has a 0.85% management fee, and its performance won’t be reported until after the first year.
Learn more about the fund.
How To Buy Fidelity Active ETF and ETF Series in Canada
You can access these ETFs using a self-directed online brokerage account or purchase them through a financial advisor.
Fidelity also offers All-in-One ETFs, including FBAL, FCNS, FGRO, and FEQT. These one-solution funds are available through the same channels.
*Source: Fidelity Investments Canada ULC
1 An ETF is an investment fund that is traded on a stock exchange like individual stocks. ETF series is a class of securities offered by a conventional mutual fund that is distributed pursuant to a simplified prospectus and ETF Facts. However, unlike traditional mutual fund series, the ETF series are listed on a stock exchange like an ETF. Traditional mutual funds series are bought and sold through registered dealers. The ETF series may generally only be subscribed for or purchased directly from the mutual fund by authorized dealers or designated brokers. Investors will be able to buy or sell ETF series on a stock exchange or marketplace through registered brokers and dealers in the province or territory where the investor resides.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund’s or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
The investment risk level indicated is required to be determined in accordance with the Canadian Securities Administrators standardized risk classification methodology, which is based on the historical volatility of a fund, as measured by the ten-year annualized standard deviation of the returns of a fund or those of a reference index, in the case of a new fund.
A fund’s volatility is determined using a statistical measure called “standard deviation.” Standard deviation is a statistical measure of how much a return varies over an extended period of time. The more variable the returns, the larger the standard deviation. Investors may examine historical standard deviation in conjunction with historical returns to decide whether an investment’s volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how an investment actually performed, but it does indicate the volatility of its returns over time. Standard deviation is annualized. The returns used for this calculation are not load-adjusted. Standard deviation does not predict the future volatility of a fund.
The statements contained herein are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, we cannot guarantee that it is accurate, complete or current at all times. It does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Fidelity Investments Canada ULC and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.
Certain statements in this commentary may contain forward-looking statements (“FLS”) that are predictive in nature and may include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest, and assuming no changes to applicable tax or other laws or government regulation. Expectations and projections about future events are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable and, accordingly, may prove to be incorrect at a future date. FLS are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any FLS. A number of important factors can contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition and catastrophic events. You should avoid placing any undue reliance on FLS. Further, there is no specific intention of updating any FLS, whether as a result of new information, future events or otherwise.
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