Fidelity Investments Canada announced Sept. 11 its plans to launch Fidelity Dividend Factor ETFs and mutual funds, which will aim to deliver monthly income and provide a targeted investment approach.
Fidelity's six new factor-based ETFs — Fidelity Canadian High Dividend Index ETF (FCCD), Fidelity U.S. Dividend for Rising Rates Index ETF (FCRR), Fidelity U.S. Dividend for Rising Rates Currency Neutral Index ETF (FCRH), Fidelity U.S. High Dividend Index ETF (FCUD), Fidelity U.S. High Dividend Currency Neutral Index ETF (FCUH) and Fidelity International High Dividend Index ETF (FCID) – are expected to begin trading on the Toronto Stock Exchange on Sept. 18. The new ETFs and mutual funds (Series F) will have management fees ranging from 0.35% to 0.45%.
"Factor investing offers tremendous opportunity to bring innovation to the Canadian marketplace. Launching our new Fidelity Dividend Factor ETFs and mutual funds reinforces our commitment to delivering an exceptional experience to our clients, an experience not just in terms of the quality and breadth of the offering but also our innovative approach to investment management," said Rob Strickland, President, Fidelity Investments Canada ULC in a statement.
A new approach to index investing
Fidelity explains that factor investing is a new approach to index investing 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.”