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Seek to do more than ride the index with Fidelity's Enhanced ETFs

Fidelity's Quantitative Research and Investments team explains how Enhanced ETFs offer a differentiated, quantitative approach to core equity investing.

Enhanced ETFs: Core equity meets data-driven

Combining active insights with quant discipline to pursue long-term outperformance.

 

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Key Takeaways

  • Fidelity's Enhanced ETFs are core building blocks for equity allocations. We apply a systematic company evaluation process to the steadiness of broad market exposure and the insights of active management—all within the generally low-cost, tax-efficient ETF vehicle.
  • Members of Fidelity’s investment team—Michael Hagopian, Shashi Naik, and Anna Lester— share how Enhanced Equity ETFs combine a proprietary quantitative approach for data-driven stock selection with a benchmark-aware risk management framework.
  • Rather than relying on third-party models, Fidelity builds its own proprietary signals from raw data, applying proprietary research and experience to create signals that we believe are stronger, more relevant, and transparent.
  • With these Enhanced ETFs, risk management and alpha generation are on equal footing, with custom risk models and core constraints helping to promote diversification.
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Active management End investor content Equity Large Cap Mid Cap Small Cap

Learn more about the differentiated approach of Fidelity's Enhanced ETFs from our investment team

Fidelity Enhanced Large Cap Core ETF

A U.S. equity strategy maintaining a large-cap core profile, leveraging a disciplined approach investing in companies with attractive characteristics.

Learn more

Fidelity Enhanced International ETF

A diversified international developed equity 
strategy, leveraging a disciplined approach 
investing in companies with attractive characteristics.

Learn more

Fidelity Enhanced Mid Cap ETF

A U.S. equity strategy maintaining a mid-cap profile, leveraging a disciplined approach investing in companies with attractive characteristics.

Learn more

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Views expressed are as of the data indicated, based on the information available at that time, and may change based on the market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

The stocks mentioned are for illustrative purposes only and not necessarily current holdings invested in by FMR LLC. References to specific company stocks should not be construed as recommendations or investment advice. The statements and opinions are subject to change at any time, based on market and other conditions.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

An ETF may trade at a premium or discount to its Net Asset Value (NAV). There can be no assurance that an active trade market will be maintained, and trading may be halted due to market conditions.

  • Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.
  • Securities selected using quantitative analysis can perform differently from the market as a whole as a result of the factors used in the analysis, the weight placed on each factor, and changes in the factors’ historical trends.

Investing involves risk including risk of loss.

Diversification does not ensure a profit or guarantee a loss.

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Although the funds seek to beat the index, this is not guaranteed, and these funds may trail the index. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks.

Growth stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks.

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