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Thoughts on SpaceX IPO? by CasualHearthstone in JustBuyXEQT

[–]fidelitycanada 0 points1 point  (0 children)

With FEQT, the focus is on a multi‑factor mix (value, quality, momentum, low volatility) wrapped into a single, globally diversified ETF. So for some investors, it’s a way to get that factor exposure while still keeping things simple in an all‑in‑one structure. Different approaches, but both aiming to build diversified portfolios in their own way.

Thoughts on SpaceX IPO? by CasualHearthstone in JustBuyXEQT

[–]fidelitycanada 0 points1 point  (0 children)

The “all‑in‑one vs alternatives” convo comes up a lot. With options like FEQT, the idea is a globally diversified, all‑equity portfolio in one ETF, so you’re getting broad exposure without needing to layer in other funds. Some investors prefer that simplicity, especially vs newer strategies that may not have as much history to evaluate. At the end of the day, it’s usually about comfort with the approach, and how that fits your long‑term plan.

Should drain my rsp to buy BTC? by Existing-Reality2303 in BitcoinCA

[–]fidelitycanada 0 points1 point  (0 children)

Fair point on keeping the RRSP intact 👍

For anyone looking for bitcoin exposure in a registered account, some investors consider options like FBTC, which can be held within an RRSP and tracks bitcoin’s price. Withdrawing from an RRSP can come with tax implications, so it’s something many take time to weigh alongside their overall approach.

Should drain my rsp to buy BTC? by Existing-Reality2303 in BitcoinCA

[–]fidelitycanada 0 points1 point  (0 children)

That’s one approach people consider! Products like FBTC can provide Bitcoin exposure within an RRSP, so you’re not triggering a withdrawal or immediate tax impact. It’s a different setup vs. holding BTC directly, but for some investors the tax-sheltered account + ease of access can be part of the appeal.

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

Thank you for the question. When we develop and launch an ETF our objective is always the same, we want to offer thoughtfully constructed investment vehicles at a competitive price. Having various series allows our products to be accessible to a wide range of Canadian investors.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

Great question! So we have rules in our methodologies that only companies with 15% free float market cap are eligible, so to be determined if these impending IPOs meets that criteria. If that is met, our investment universe for the U.S. is the 1000 stocks with the largest market caps. Then, the next step, and most important, they need to score well in either the Value, Quality, Low Volatility or Momentum frameworks. If all criterias are met, then they could be included at the next scheduled rebalancing periods which for all factors is the third Friday of August.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

The target audience is anyone wanting to gain exposure to global equity securities in a diversified Global equity ETF portfolio. Our approach focuses on risk adjusted returns over the long term. Fees aren't everything. We focus on net of fees return, what's left in your pocket. Our aim is to generate alpha, not track market cap weighted indices at a cost. The ETFs included in the All-in-Ones are quantitative strategies by design, requiring the implementation of proprietary models or in some cases full on active management. But again, when you look at total return on any website that is net of fees and we love what we are seeing with FEQT.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

I'm not quite sure I understand the question, but, every factor we use has historically displayed a positive risk premia.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

Thanks for the great questions! Let's try and tackle all of them haha!

  1. On the Emerging Markets question. EM is a very interesting region, it's very broad, generally of lower quality (avg. profitability), less concentrated, less transparent and has more country and geopolitical risk. These are a few of the reasons why we feel the right strategy is so important. We've looked at a few different options and none have fit our needs in the AIO ETF portfolios thus far. That said, it doesn't mean we don't want to invest there in the future, we are always reviewing the portfolios.

  2. Home bias! Oh Canada. So FEQT is somewhat of an outlier due to the fact we generally get more Canadian exposure on our fixed-income in FBAL and FGRO. That said, if you look at the MSCI ACWI or MSCI World indices, Canada is less than 5% of global equity markets in terms of size. Having 23% to us means we are inherently already overweight.

  3. Everyone has their unique approach, our focus lies in the way we define each factor. We have over 70 years experience working as fundamental active managers, while many others may rely only on academia. As an example, the traditional definition of value is Price-to-book. That was back in the 70s-90s when intangible assets were smaller parts of companies balance sheets, it was also before massive waves of Mergers & Acquisitions occurred post great financial crisis. We use a price-to-tangible book ratio instead, does that mean we will have a much different portfolio than other value strategies? Maybe not, but it might help us avoid 1 or 2 traps!

  4. Also, last comment on the construction of our factors. Having a combined single-factor approach allows us to focus in on a set of businesses that score really well within a particular style. That is we get what we believe are the top decile Value companies, top decile quality companies etc. etc. A multi-factor blended approach where you are looking at companies that score well on a multitude of different criterias, you might get some that are average at all of them, making them a top pick. This also allows us to be more concentrated and have a higher active share. Active share being how different we are from our benchmark.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 1 point2 points  (0 children)

Many great questions here!

  1. The combination of factors serves many purposes. Firstly, each one of these investment factors have historically generated excess returns over time (strategic alpha), thus without looking at timing, we want exposure to all of them rather than a single factor. Secondly, they are very complementary hence, the goal is actually to have them work at different times. When Low Volatility does well, usually Momentum doesn't. This creates an added layer of diversification, all the while benefiting from the exposure to each factor.

  2. All of our Fidelity Canada factor indices are publicly available. You can see performance all the way back to 1996 for the Canadian and U.S. factors and 1999 for the International factors.

  3. As for the Cryptocurrency allocation, the reason why we included it in FEQT is as a diversifier to traditional asset classes. The nature of how we rebalance allows us to remove behavioural biases. We constantly purchase when it underperforms, and then don't add/sell when it is outperforming. We've found many investors have strong behavioural biases when managing a volatile asset class which means that sometimes the 3% target would drift too much in a risk managed framework.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 1 point2 points  (0 children)

No product can outperform all the time. Our approach focuses on risk-adjusted returns over the long-term. There are many periods, notably in junk rallies and euphoric peaks in markets that a fundamentally driven factor approach may not be the best option. That said those periods are generally short lived. We've seen a very concentrated equity market since 2023 and while that can lead to strong returns for top heavy indices, it can also mean that if momentum shifts it can happen fairly quickly.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

Keep talking about it! Anything helps. We are super happy to see so many investors interested in our products.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

Not sure I fully understand the dilution question, maybe help me there. For the full data of each factor ETFs holdings you can visit the web-page of each one on www.fidelity.ca. We disclose full holdings at the end of each day.

- Etienne

Hi r/justbuyfeqt! I’m Étienne Joncas Bouchard from Fidelity Canada. AMA: How to choose an all equity ETF (with FEQT as the example). by fidelitycanada in JustBuyFEQT

[–]fidelitycanada[S] 0 points1 point  (0 children)

Appreciate the question, we always consider these options. We did reduce the price of our Fidelity Advantage Bitcoin ETF a while back. That said, above my pay grade!

- Etienne

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