This article is sponsored by Fidelity Investments Canada ULC. All opinions are mine.
Fidelity offers a comprehensive suite of mutual funds across a broad range of assets, including equities, fixed-income, and non-traditional asset classes.
In addition to this diverse lineup of mutual funds, it now also offers investors access to active ETFs for those looking to enhance their passive investment strategies.
Unlike traditional ETFs that aim to replicate the performance of a benchmark index, active ETFs seek to outperform the market.
Fidelity Fixed-Income Active ETFs
The three Fidelity Fixed-Income Active ETFs are:
- Fidelity Canadian Short Term Corporate Bond ETF
- Fidelity Global Core Plus Bond ETF
- Fidelity Global Investment Grade Bond ETF
These funds are listed on the Toronto Stock Exchange and can be traded using a discount brokerage discount or through a financial advisor.
Fidelity Canadian Short Term Corporate Bond ETF (FCSB)
Key facts for FCSB as of September 26, 2023*:
- Inception date: September 20, 2019
- Net assets: $123.2 million
- Eligible accounts: Registered and non-registered investment accounts.
The Fidelity Canadian Short Term Corporate Bond ETF invests primarily in Canadian fixed income securities, usually with an average term to maturity of 5 years or less.
This ETF has a low risk rating. As of June 30, 2023, its top 10 holdings included the Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Bank of Montreal, Government of Canada, Enbridge, Bank of America, Allied Properties Real Estate Investment Trust, and Bruce Power Limited Partnership. The ETF’s investments will change.
As of September 30, 2023, FCSB returned, after fees and expenses, 2.04% year-to-date and 3.02% over the last one year period.
The management expense ratio (MER) for FCSB was 0.44% as of March 31, 2023. This implies a $44 annual fee for every $10,000 invested.
You can learn more about the fund.
Fidelity Global Core Plus Bond ETF (FCGB)
Key facts for FCGB as of September 26, 2023*:
- Inception date: September 20, 2019
- Net assets: $826.4 million
- Eligible accounts: Registered and non-registered investment accounts
Fidelity Global Core Plus Bond ETF invests primarily in a mix of fixed income securities of issuers from around the world. These include debt securities issued by sovereign entities and companies. It can invest in these securities either directly or indirectly through investments in underlying investment funds.
FCGB has a low-risk rating, and the majority of its bond holdings are AAA credit rated.
As of June 30, 2023, FCGB’s top 10 investments included U.S. Treasury Notes, Fidelity Floating Rate High Income Multi-Asset Base Fund, Fidelity Global Credit Ex-U.S. Investment Trust, United States Treasury Bond, Fidelity American High Yield Fund, Dominican Republic, Petroleos Mexicanos, Nota do Tesouro Nacional, United Mexican States and Government of Japan. The ETF’s investments will change.
As of September 30, 2023, FCGB returned, after fees and expenses, -0.32% year-to-date and 2.29% over the last one year.
The MER for the fund was 0.56% as of March 31, 2023. FCGB is also offered in US dollars under the ticker FCGB.U.
Fidelity Global Investment Grade Bond ETF (FCIG)
This active ETF invests primarily in a mix of fixed income securities from around the world, with an emphasis on investment grade fixed income securiteis. Like FCGB, many of its holdings are issued by governments and large corporations. A majority of its investments are also AAA credit rated.
Key facts for FCIG as of September 26, 2023*:
- Inception date: June 5, 2020
- MER: 0.56%
- Net assets: $143 million
- Eligible accounts: Registered and non-registered investment accounts.
Fidelity Global Investment Grade Bond ETF has a low risk rating. As of September 30, 2023, FCIG returned, after fees and expenses, -1.62% year-to-date and 0.16% over the last one year.
FCIG is also offered in US dollars under the ticker FCIG.U. Learn more about the fund.
How To Buy Fidelity Active ETFs in Canada
You can purchase all Fidelity ETFs using a self-directed online brokerage account, or via a financial advisor.
In addition to the company’s fixed income active ETFs, it also has equity active ETFs and ETF series as follows:
- Fidelity Global Innovators® ETF
- Fidelity Greater Canada Fund – ETF Series1
- Fidelity Canadian Large Cap Fund – ETF Series1
- Fidelity Global Small Cap Opportunities Fund – ETF Series1
*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. The indicated rates of return are historical annual compounded total returns for the period indicated including changes in unit value and reinvestment of distributions. The indicated rates of return do not take into account sales, redemption, distribution or option charges or income taxes payable by any unitholder that would have reduced returns. 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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