Fidelity Expands Fidelity Factor ETFs and Mutual Funds

 ~Fidelity Low Volatility and Fidelity High Quality Factor ETFs and Mutual Funds to track tailor-made indices designed to outperform over the long-term~

TORONTO, Jan. 24, 2019 /CNW/ - Fidelity Investments Canada ULC, one of Canada's top investment management firms, today expanded its suite of ETFs and Mutual Funds with the launch of Fidelity Low Volatility and Fidelity High Quality Factor ETFs and Mutual Funds for financial advisors and investors.

Fidelity Factor (CNW Group/Fidelity Investments Canada ULC)

"At Fidelity, we are committed to providing investors the most innovative and competitive investment solutions to meet changing needs of investors," said Rob Strickland, President, Fidelity Investments Canada ULC. "Building on our line-up of Dividend Factor ETFs and mutual funds, the launch of Low Volatility and High Quality strategies expands choice and offers investors access to even more intelligently-designed investment solutions."

Since Fidelity introduced in September 2018 Fidelity Dividend Factor ETFs that target high-quality dividend-paying companies and seek to deliver monthly income, demand among investors for these types of innovative solutions offered by Fidelity has grown. New Fidelity Low Volatility and High Quality ETFs and Mutual Funds will meet this growing demand and seek to deliver on investors' changing needs.

Fidelity Low Volatility Factor ETFs and Mutual Funds provide investors single-factor exposure to companies with lower volatility than the broader equity market. These Low Volatility strategies aim to generate market-like returns over time with lower volatility, and they may be used as a core holding in a portfolio for risk-adverse investors or as a tactical position to minimize drawdown during periods of heightened volatility. The funds track indices that are tailor-made and actively designed by Fidelity Management & Research Company (FMR Co.) which seek to outperform the broader equity market over the long-term.

Fidelity High Quality Factor ETFs and Mutual Funds provide investors single-factor exposure to high quality companies that are characterized by superior profits with strong balance sheets and stable cash flows. These High Quality strategies seek to improve long-term performance potential by targeting factors that have historically outperformed broad market indices, and they may be used for investors looking for long-term stability and performance. Similarly, these funds will track tailor-made and actively designed indices constructed by FMR Co.

The following factor-based Low Volatility and High Quality Factor ETFs will commence trading today (January 24, 2019) on the Toronto Stock Exchange:

New Fidelity Factor ETFs	New Fidelity Factor Mutual Funds
Fidelity Canadian Low Volatility Index ETF (FCCL)	Fidelity Canadian Low Volatility Index ETF Fund
Fidelity U.S. Low Volatility Index ETF (FCUL)	Fidelity U.S. Low Volatility Index ETF Fund
Fidelity U.S. Low Volatility Currency Neutral Index ETF (FCLH)	Fidelity U.S. Low Volatility Currency Neutral Index ETF Fund
Fidelity International Low Volatility Index ETF (FCIL)	Fidelity International Low Volatility Index ETF Fund
Fidelity Canadian High Quality Index ETF (FCCQ)	Fidelity Canadian High Quality Index ETF Fund
Fidelity U.S. High Quality Index ETF (FCUQ)	Fidelity U.S. High Quality Index ETF Fund
Fidelity U.S. High Quality Currency Neutral Index ETF (FCQH)	Fidelity U.S. High Quality Currency Neutral Index ETF Fund
Fidelity International High Quality Index ETF (FCIQ)	Fidelity International High Quality Index ETF Fund

The new ETFs and mutual funds (Series F) will be competitively priced with management fees ranging from 0.35% to 0.45%.

For more information, visit www.fidelity.ca/etfs.

The Fidelity Factor

In recent years, a new approach to index investing—factor investing—has started to gain traction among investors. Factor investing refers to an enhanced indexing strategy that seeks to exploit certain performance factors in an attempt to outperform a market cap-weighted benchmark index.

In this sense, factor investing differs fundamentally from a traditional passive indexing strategy. A strategic allocation to a single or combination of factor-based strategies can help investors reap the potential long-term benefits of factors, and should be determined based on individual investment styles and objectives.

There are several ways investors can incorporate factor-based strategies into their broader portfolios as tools to add incremental returns, reduce risk, or achieve a desired investment outcome:

Strategic exposure to factors: Strategic allocations to factors can enhance risk-adjusted returns over the long-term. Investors may consider exposure to one or a combination of factors to take advantage of their potential benefits.

Portfolio construction and risk management tools: Investors and advisors can use factor-based strategies to fine-tune their exposures and better align their broader portfolios with their intended investment objectives and risk profiles.

Cyclical exposures that vary through time: Because factor returns can vary through time, adjusting factor exposures using a cyclical framework may help investors express a shorter-term market or investment view.

Fidelity's Factor ETFs and mutual funds track the performance of tailor-made indices that are actively designed by FMR Co., which has considerable expertise in developing and designing tailor-made indices. These indices are differentiated through their security selection and portfolio construction methods. These two approaches help minimize unintended risks such as single company bias or sector concentration.

Fidelity Investments Canada ULC

Fidelity Investments Canada ULC manages a total of $130 billion in mutual fund, institutional and ETF assets. This includes $33 billion in assets for institutional clients including public and corporate defined benefit pension and defined contributions plans, sub-advised programs, endowments, foundations and other corporate assets on behalf of clients across Canada as at November 30, 2018.

Fidelity Investments Canada ULC provides Canadian investors a full range of domestic, international and income oriented mutual funds and ETFs, as well as asset allocation, managed solutions, and a high net worth program. Fidelity Funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies.

Read a fund's prospectus and consult your financial advisor before investing. Mutual funds, including exchange-traded funds, are not guaranteed; their values change frequently and past performance may not be repeated. Investors will pay management fees and expenses, may pay commissions or trailing commissions and may experience a gain or loss.

SOURCE Fidelity Investments Canada ULC

Chris Pepper, Vice-President, Corporate Affairs, Fidelity Investments Canada ULC, T: [phone], M: [phone], E: [email protected], Find us on social media @FidelityCanada