ETF Trends
ETF Trends

Market segments will perform differently during various economic cycles, and as the U.S. may be heading toward the late business cycle, exchange traded fund investors should consider which areas could drive returns or increase portfolio risks.

On the upcoming webcast, Finding Strategic and Cyclical Exposure: Sector and Factor Investing, Denise Chisholm, Sector Strategist att Fidelity Investments, and Darby Nielson, Managing Director of Research at Fidelity Investments, will explain market behaviors during varying economic cycles and the ways both factor and sector investing can provide exposure to the market, diversification benefits and potentially enhance an investment portfolio.

For example, Fidelity offers a suite of smart-beta, factor-based ETF strategies that leverage decades of analysis and research out of Fidelity’s quant team to potentially help investors generate improved risk-adjusted returns.

Fidelity’s line of factor based ETFs include the Fidelity Dividend ETF for Rising Rates (NYSEArca: FDRR), 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) and Fidelity Core Dividend ETF (NYSEArca: FDVV).

The suite of single-factor ETFs focus on a single intended exposure. FDRR is designed to reflect the performance of stocks of large and mid-capitalization, dividend-paying companies expected to pay and grow their dividends and have a positive correlation of returns to increasing 10-year U.S. Treasury yields.

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