Introducing Fidelity Equity Premium Yield ETF – Eric Granat and Andrei Bruno
Today, Fidelity Investments Canada launched Fidelity Equity Premium Yield ETF. Portfolio manager Eric Granat, along with Fidelity Director of ETF’s Andrei Bruno join the program to discuss the fund’s genesis, objectives, and how it may fit into a client’s portfolio. Andrei says this new ETF product provides an option for investors who are seeking exposure to an equity and options-based investment strategy that can generate potentially higher levels of cash flow compared to equity-only strategies. Eric adds the new fund produces an attractive level of yield, while balancing upside opportunity. He says the balance of annual dividend is 6 to 8% to allow for equity appreciation, which could create alpha compared to other products. Eric says competitors typically trade or sell options against the equity once a month while Fidelity does it on a weekly basis. He says they use a laddered strategy - holding at least 4 options with different strike price and expiry dates.
Recorded on September 26, 2024.
Fidelity Canada provides Canadian investors a full range of domestic, international and income oriented mutual funds, as well as asset allocation and managed solutions and the high net worth program, the Fidelity Private Investment Program. Fidelity Funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies.
For privacy policy and legal information, please visit: www.fidelity.ca
Read a fund’s prospectus and consult your financial advisor before investing. Mutual 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.
Views expressed regarding a particular company, security, industry or market sector are the views only of that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Such views are subject to change at any time based upon markets and other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Certain statements in this commentary may contain forward-looking statements ("FLS") that are predictive in nature and may include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest and foreign exchange rates, equity and capital markets, and the general business environment, in each case assuming no changes to applicable tax or other laws or government regulation. Expectations and projections about future events are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable and, accordingly, may prove to be incorrect at a future date. FLS are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any FLS. A number of important factors can contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition and catastrophic events. You should avoid placing any undue reliance on FLS. Further, there is no specific intention of updating any FLS whether as a result of new information, future events or otherwise.