Sector, Factor ETF Strategies to Capitalize on a Changing Market Environment

Fidelity Low Volatility Factor ETF (NYSEArca: FDLO)

Fidelity Momentum Factor ETF (NYSEArca: FDMO)

Fidelity Quality Factor ETF (NYSEArca: FQAL)

Fidelity Value Factor ETF (NYSEArca: FVAL)

Fidelity Core Dividend ETF (NYSEArca: FDVV).

“Fidelity has a long history of factor investing, which has evolved significantly over the last decade since the Quantitative Reasearch team was formed,” Nielson said.

The line of Fidelity factor based ETFs can help investors achieve strategic and cyclical exposure, along with filling out an investment portfolio construction. By incorporating the various factor based ETFs into an investment portfolio, investors may be better able to diminish risks and still capture any upside potential.

“Most factors are not highly correlated, so diversifying among them may improve risk-adjusted returns over time,” Nielson added. “Diversifying across multiple factors can help investors achieve more consistent performance over time.”

Financial advisors who are interested in learning more about cyclical investment strategies can watch the webcast here on demand.