INVESTING IDEAS
Turn volatility into opportunity with Fidelity Hedged Equity ETF (FHEQ)
Downside protection plays a key role in reducing the impact of market downturns. FHEQ is designed to help limit losses and support a more efficient recovery when markets rebound. Find out how.
Impact of drawdowns
Market volatility is an inevitable part of investing, and sharp drawdowns can present significant challenges to achieving long-term growth.
Limiting losses not only helps safeguard capital but also enables the potential for a smoother path to long-term growth.
Gains required to break even
Source: Fidelity Investments. It is not possible to invest directly in an index. All market indices are unmanaged. Not intended to represent the performance of any Fidelity fund. For illustrative purposes only.
Past performance is no guarantee of future results.
Turning the tide on downside risk
When assets decline in value, the returns needed to recover grow disproportionately, making recovery more challenging. Managing drawdowns effectively provides a stronger foundation for preserving wealth and achieving financial objectives.
Reducing drawdowns through defensive equity investing may help drive greater compounded returns, improving outcomes over time. Strategies emphasizing downside protection, like FHEQ, can help reduce loss and stabilize portfolios.
Mitigate downside risk with Fidelity Hedged Equity ETF (FHEQ)
- Actively managed
- Downside risk mitigation
- Equity growth potential
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History tells us that companies with strong earnings growth tend to outperform,1 making growth-focused strategies a powerful tool for building a stronger financial future.
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Outpacing inflation
Whether it's saving for retirement, funding education, or building a legacy, inflation stands in the way of achieving important goals. Choosing the right investments can help outpace inflation and preserve financial stability.
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1 Fidelity Investments and FactSet, as of December 31, 2023.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The ETF uses investment techniques that are different from the risks ordinarily associated with traditional equity investments and are considered complex trading strategies. The Fund may purchase or write (i.e., sell) put and call options. The notional downside protection offered by the option may be less or greater than the value of the Fund's portfolio. Options may involve economic leverage, which could result in greater volatility in price movement. Certain transaction costs associated with purchasing and writing options may impact the Fund's returns and in highly volatile markets the cost is expected to increase. 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. High portfolio turnover (more than 100%) may result in increased transaction costs and potentially higher capital gains or losses. The effects of higher than normal portfolio turnover may adversely affect the fund's performance. An ETF may trade at a premium or discount to its Net Asset Value (NAV). These alternative investment strategies may not be suitable for all investors and are not intended to be a complete investment program for any investor. There is no assurance that the ETFs will be profitable.
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.