Strategies
Factor investing
Help clients add more precise exposure to their portfolios with our suite of factor-based investing options.
Factor-based investing can offer insight into historical risk and return drivers, help target precise exposure, and express investment views—all while managing unintended risk. Your clients’ portfolios may benefit from the strength of Fidelity’s factor lineup, which is backed by:
Decades of fundamental research
Our quantitative teams evaluate and analyze decades of bottom-up, security-level data to inform our factor definitions.
Systematic tools and quantitative expertise
Our quantitative teams use fundamental data to systematically verify which factors have outperformed in the past, so they can build models to help them generate new investing ideas.
Optimal construction
Our factor strategies aim to manage asset-specific risk and high portfolio concentration, with a neutral size exposure that helps avoid unplanned sector bets.
Factors can help describe a security’s risk and return profile more precisely. Here’s the market exposure each factor offers.
Style factors
These factors help explain risk and return within asset classes.
Value: Securities that are inexpensive relative to fundamentals
Quality: Financially healthy companies
Low Volatility: Lower-risk securities
Momentum: Positively trending securities
Dividend Yield: Securities that pay higher dividends
Size: Smaller, potentially more agile companies
Macro factors
These factors help explain risk and return across asset classes.
Inflation: Rising prices can affect inflation-sensitive assets
Interest Rate: Lower interest rates can result in better returns for certain assets
Credit: Higher default risk can be rewarded over time
Explore our factor ETFs to help your clients navigate today’s market conditions.
Fidelity Stocks for Inflation ETF
Targets securities with attractive valuations, high-quality profiles, and positive momentum signals, emphasizing industries that tend to outperform in inflationary environments.
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Fidelity Value Factor ETF
Capitalizes on cheap stocks, with low prices relative to fundamentals, which have historically outperformed the market over time.
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We offer factor ETFs across geographies and asset classes.
- Domestic Equity
- International Equity
- Fixed Income
Fidelity Dividend ETF for Rising Rates
Fidelity High Dividend ETF
Fidelity Low Volatility Factor ETF
Fidelity Momentum Factor ETF
Fidelity Quality Factor ETF
Fidelity Small-Mid Multifactor ETF
Fidelity Stocks for Inflation ETF
Fidelity U.S. Multifactor ETF
Fidelity Value Factor ETF
Explore our latest research & insights
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Explore the ways thematic investing helps clients enhance their portfolios and align their investments with what matters to them.
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Let’s talk about factor investing solutions for your clients.
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ETFS are subject to market fluctuations, the risks of their underlying investments, management fees, and other expenses.
Investing involves risk, including risk of loss. Past performance is no guarantee of future results.
The indices were created by FMR Co., Inc, using a rules-based proprietary index methodology and the performance of the funds, and their indices may vary somewhat due to various factors including fees and expenses. You cannot invest directly in an index.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The securities of smaller, less well-known companies can be more volatile than those of larger companies. There is no guarantee that a factor-based investing strategy will enhance performance or reduce risk. Before investing, make sure you understand how the fund’s factor investment strategy may differ from more traditional index products. Depending on market conditions, fund performance may underperform, potentially for extended periods of time, compared to products that seek to track a more traditional index. The return of an index ETF is usually different from that of the index it tracks because of fees, expenses, and tracking error. An ETF may trade at a premium or discount to its Net Asset Value (NAV).