FHEQ

📎 Investment Objective

The Fidelity Hedged Equity ETF (FHEQ) seeks to provide investment returns that correspond, before fees and expenses, to the performance of the Fidelity Hedged Equity Index, which is designed to provide exposure to U.S. large-cap equities with a partial hedge against market declines.

✨ Key Features

• Seeks to provide exposure to U.S. large-cap equities with a partial hedge against market declines
• Uses equity index futures contracts to partially hedge the portfolio's market risk exposure
• Targets a specific hedge ratio to reduce the portfolio's sensitivity to broad market movements
• Passively managed to track the Fidelity Hedged Equity Index

⚠️ Primary Risks

• Market risk: The fund's performance is subject to the overall performance of the U.S. large-cap equity market
• Hedging risk: The hedging strategy may not be effective in reducing the portfolio's exposure to market declines
• Tracking error risk: The fund may not perfectly track the performance of its underlying index
• Liquidity risk: The fund may experience reduced liquidity during periods of market stress

👤 Best For

The Fidelity Hedged Equity ETF may be suitable for investors seeking exposure to U.S. large-cap equities with a partial hedge against market declines, as part of a diversified investment portfolio. This ETF may be particularly appealing to investors who are concerned about market volatility and want to reduce their portfolio's sensitivity to broad market movements.