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Aim to outpace inflation with Fidelity Enhanced Large Cap Core ETF (FELC)
Equity securities with strong brands, a global presence, and pricing power exhibit resilience, growth potential, and can help preserve portfolio value over time. FELC's exposure to large cap equities like these can help protect purchasing power and grow wealth amid rising costs.
The inflation challenge
Inflation is a lasting concern when it comes to managing finances. Over time, it quietly erodes purchasing power—making today's dollar worth less tomorrow. For investors, this can jeopardize long-term financial goals.
Outpacing inflation is an important step to protecting and growing wealth.
The impact on purchasing power
It’s estimated that in 25 years, $50,000 may buy as much as $30,477 buys today—even at a low inflation rate of 2%.1
Source: Fidelity Investments.
Past performance is no guarantee of future profit.
Fidelity Enhanced Large Cap Core ETF (FELC): NAV vs. U.S. Inflation (CPI)
Source: The Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics and Fidelity Investments.
Past performance is no guarantee of future profit.
Winning the battle against inflation
Maintaining financial security in the face of inflation requires more than just saving—it calls for a smart, forward-looking approach to protecting and growing wealth.
Designed to identify companies with attractive characteristics and the potential to deliver long-term outperformance, FELC has a strong track-record: from 2014 to 2024, FELC delivered an annualized return of 9.74%, which significantly outpaced the annualized inflation rate of 2.73% as shown in the graph to the left.
Combat inflation with equity exposure and Fidelity Enhanced Large Cap Core ETF (FELC)
- Benchmark-aware core holding
- Low cost actively managed ETF
- Thoughtful alternative to index investing
Explore more active ETF investing ideas with these goals in mind
Capital appreciation
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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Income
With income-generating investments investors can generate a reliable income source, build resilience in their portfolio, and help strengthen their overall financial foundation.
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Downside protection
Downside protection plays a key role in reducing the impact of market downturns. Learn more about strategies designed to help limit losses and support a more efficient recovery when markets rebound.
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1. All numbers were calculated based on hypothetical rates of inflation of 2%, 3%, and 4% (historical average from 1926 to 2023 was 3%) to show the effects of inflation over time; actual inflation rates may be more or less and will vary.
2. Source: Fidelity Investments and FactSet, as of December 31, 2023.
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.
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. 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. Securities lending involves the risk that the borrower may fail to return the securities loaned in a timely manner or at all. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. An ETF may trade at a premium or discount to its Net Asset Value (NAV).
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 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).
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