Active ETFs have leaped forward in prominence over the last several years, with many investors increasing their usage of ETFs as part of their portfolios. With many investors looking for an active equity ETF in a sea of options, FELC, the Fidelity Enhanced Large Cap Core ETF, could stand out.
See more: Beyond Index Investing – Seeking Enhanced Outcomes Through Large Cap ETF FELC
An Active Equity ETF to Watch
Investors often first consider passive investments for their core holdings to mirror market returns. That can take on some different flavors, domestic or international, large or small cap. Fidelity’s Enhanced ETF suite offers an active alternative for each of these market exposures.
By considering Fidelity’s Enhanced ETFs, investors can now leverage active strategies that stick close to an index but leave managers with the freedom to make thoughtful security selection decisions with a close eye on both outperformance potential and risk management.
FELC embraces the potential benefits of that approach. The active equity ETF offers investors a strong active equity ETF option combining passive and active attributes.
FELC’s Big Focus
At just 18 BPS, FELC primarily focuses on stocks in the S&P 500, utilizing a disciplined investment process for selecting securities and building the portfolio. The fund leverages a quantitative process that considers a wide and diverse array of characteristics, including growth, quality, and valuation, as well as non-traditional metrics such as short interest. The goal is to provide investors with exposure similar to the S&P 500 while offering the potential for outperformance.
Investors are facing a complicated set of questions right now. While the U.S. economy appears on track for a soft landing, inflation remains. At the same time, rate cuts may not arrive for some time yet. An active strategy like FELC combines active flexibility and seasoned management with passive benefits to make it an intriguing option looking forward.
For more news, information, and strategy, visit the ETF Investing Channel.
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