Cboe Canada recently welcomed 12 ETF solutions from Fidelity Investments Canada, as the asset manager has changed the primary listing venue for these mandates, an action they announced in February 2024. The investment focus and strategies of the migrating Fidelity Investments Canada ETFs are varied, including short-term corporate debt, Canadian bonds, global bonds, and factor-based solutions.

Detailed below are the twelve Fidelity Investments Canada ETFs that are now trading on the Cboe Canada exchange:

Fidelity Canadian Low Volatility ETF (Ticker: FCCL)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada Canadian Low Volatility Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization Canadian companies with lower volatility than the broader Canadian equity market.

Fidelity Canadian Momentum ETF (Ticker: FCCM)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada Canadian Momentum Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization Canadian companies that exhibit positive momentum signals.

Fidelity Canadian Short Term Corporate Bond ETF (Ticker: FCSB):

The fund aims to provide a steady flow of income. It invests primarily in Canadian fixed income securities, usually with an average term to maturity of five years or fewer. It can invest in these securities, either directly or indirectly, through investments in underlying investment funds.

Fidelity Global Core Plus Bond ETF (Ticker: FCGB/FCGB.U)

The fund aims to provide a steady flow of income with the potential for capital gains. It invests primarily in a mix of fixed income securities of issuers from around the world. It can invest in these securities, either directly or indirectly, through investments in underlying investment funds.

Fidelity Global Investment Grade Bond ETF (Tickers: FCIG/FCIG.U)

The fund aims to provide a steady flow of income with the potential for capital gains. It invests primarily in a mix of fixed income securities of issuers from around the world, with an emphasis on investment grade fixed income securities. It can invest in these securities, either directly or indirectly, through investments in underlying investment funds.

Fidelity International Low Volatility ETF (Ticker: FCIL)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada International Low Volatility Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization foreign companies that have their principal business activities or interests outside of Canada or the U.S. with lower volatility than the broader developed international equity market.

Fidelity International Momentum ETF (Ticker: FCIM)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada International Momentum Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization foreign companies that have their principal business activities or interests outside of Canada or the U.S. that exhibit positive momentum signals.

Fidelity Systematic Canadian Bond Index ETF (Ticker: FCCB)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada Systematic Canadian Bond Index. This Fidelity ETF invests primarily in Canadian fixed income securities.

Fidelity U.S. Low Volatility Currency Neutral ETF (Ticker: FCLH)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Low Volatility Currency Neutral Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies with lower volatility than the broader U.S. equity market and uses derivatives to try to minimize the exposure to currency fluctuations between the U.S. and Canadian dollars.

Fidelity U.S. Low Volatility ETF (Tickers: FCUL/FCUL.U)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Low Volatility Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies with lower volatility than the broader U.S. equity market.

Fidelity U.S. Momentum Currency Neutral ETF (Ticker: FCMH)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Momentum Currency Neutral Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization U.S. companies that exhibit positive momentum signals and use derivatives to try to minimize the exposure to currency fluctuations between the U.S. and Canadian dollars.

Fidelity U.S. Momentum ETF (Tickers: FCMO/FCMO.U)

The fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada U.S. Momentum Index. This Fidelity ETF invests primarily in equity securities of large and mid-capitalization.

Fidelity Investments Canada’s growing presence on Cboe Canada

With the stated Fidelity Investments Canada ETF offerings now being listed on Cboe Canada, the asset manager will have 29 distinct investment mandates on the exchange, as of April 2024. Earlier this year Fidelity launched seven new mandates on Cboe Canada. These solutions provide investors with access to alternative strategies and diversified equity exposures with a regional focus. Collectively, the assets under management (AUM) of these 29 funds are over five billion Canadian dollars.  

Among the Fidelity ETFs listed on Cboe Canada, the Fidelity Global Core Plus Bond ETF (Ticker: FCGB) has the largest AUM, with over one billion Canadian dollars in net assets as of April 3rd, 2024.

Leveraging Fidelity’s global resources and expertise in fixed income investing and trading, FCGB invests primarily in a mix of fixed income securities of issuers from around the world and aims to provide a steady flow of income with the potential for capital gains. The fund has a high credit quality tilt and can actively manage up to 20% of the foreign currency exposure.

From a performance perspective, the Fidelity Global Innovators ETF (Ticker: FINN) has exhibited the strongest performance of the group, returning 27.57% as of March 31st, 2024. The globally oriented fund provides investors with access to companies that have the potential to be disruptive innovators, in that, the manager seeks to identify companies that are positioned to benefit from the application of innovative and emerging technology or that employ innovative business models.

In reviewing the holdings of the fund, as of December 2023, Magnificent Seven members – NVIDIA, Microsoft, Amazon, Meta Platforms, and Alphabet - are top holdings. Eli Lilly, the pharmaceutical firm responsible for the popular diabetes and weight loss drugs Zepbound™ and Mounjaro™ is also a holding.

Finally, among the Fidelity balanced ETF solutions listed on Cboe Canada, the Fidelity All-in-One Balanced ETF (Ticker: FBAL) has the largest AUM, approximately $784 million, as of April 3rd, 2024. The ETF is a single-ticket solution that provides diversified exposure across regions, market caps, and investment factors; while also allowing investors to benefit from professional management.

To execute the fund’s investment strategy, underlying Fidelity ETFs are utilized to gain market exposures. The fund has an asset mix of 59% equity, 39% fixed income, and 2% cryptocurrencies.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.