Fidelity Investments Canada ULC will be launching six new factor-based ETFs and mutual funds next week.
The ETFs are the first for Fidelity in Canada and will begin trading Sept. 18 on the Toronto Stock Exchange.
The Fidelity Dividend Factor ETFs and corresponding mutual funds were created to provide a monthly income, the firm said in a release, and comprise stocks chosen to avoid “unintended risks.” The indices the funds track are actively designed by Fidelity Management & Research.
Factor investing differs from a traditional passive indexing strategy by using certain performance factors to try to outperform a market cap-weighted benchmark index.
The new ETFs are:
- Fidelity Canadian High Dividend Index ETF (FCCD);
- Fidelity U.S. Dividend for Rising Rates Index ETF (FCRR);
- Fidelity U.S. Dividend for Rising Rates Currency Neutral Index ETF (FCRH);
- Fidelity U.S. High Dividend Index ETF (FCUD);
- Fidelity U.S. High Dividend Currency Neutral Index ETF (FCUH);
- Fidelity International High Dividend Index ETF (FCID)
The management fees for the ETFs and mutual fund (series F) will range from 0.35% to 0.45%.
Fidelity also said it will be launching the Fidelity Tactical Global Dividend ETF Fund, which mainly invests in Fidelity ETFs focused on global dividend-paying equity securities.