Fidelity’s Global Equity+ ETFs Mark Strong First-Year Gains
Fidelity’s Global Equity+ ETFs (FGEP/FGEB) offer investors diversified global exposure with strong one-year performance, even through recent market volatility.
With investment opportunities emerging worldwide, investors are increasingly seeking solutions that maintain a global focus. Recently, two Fidelity Investments Canada ETF series offerings, the Fidelity Global Equity+ Fund (Tickers: FGEP/FGEP.U) and the Fidelity Global Equity+ Balanced Fund (Ticker: FGEB), have established a one-year performance track record.
Launched on May 16, 2024, both fund-of-funds solutions provide exposure to a diverse range of asset classes and strategies through a single-ticket solution. As shown in the following chart, both funds have rewarded investors over the year in focus, particularly considering the volatility present in recent months.
FGEP’s Investment Focus
The Fidelity Global Equity+ Fund provides investors with access to the global equity landscape through several underlying funds. As illustrated in the following image, although the fund has significant exposure to Canada via the Fidelity Greater Canadian and Fidelity Canadian Large-Cap Multi-Asset Base Fund, the Fidelity Global Innovators Investor Trust grants access to some of the most important and economically vital businesses within the global economy. The Fidelity Global Value Long/Short Fund serves as the solution’s liquid alternative exposure, taking both long and short equity exposures of primarily developed market equity and credit securities across different countries and regions.
FGEB’s Investment Focus
As the name suggests, the Fidelity Global Equity+ Balanced Fund is a global solution that provides both equity and fixed income exposure while maintaining a neutral mix of 55% equities and 45% fixed income. The fund’s equity holdings consist of those from the Fidelity Global Equity+ Fund, while the fixed income exposure is obtained through the Fidelity Multi-Sector Bond Hedged Multi-Asset Base Fund and the Fidelity Strategic Income Fund. The value proposition of the bond holdings within the portfolio is its ability to serve as a ballast during periods of market drawdown; this is evident from the fund’s performance illustrated in the first chart. While both funds have a stated income focus, the multi-sector bond fund has the flexibility to invest across sectors, industries, asset classes, and maturities, whereas the strategic income bond fund follows a neutral mix of approximately 45% higher-yielding lower-quality fixed income securities, 25% U.S. government and investment-grade fixed income securities, 15% emerging market debt securities, and 15% foreign development market securities.
Takeaway
For Canadian investors seeking global exposure, both the Fidelity Global Equity+ Fund and the Fidelity Global Equity+ Balanced Fund provide access to a diverse global equity and fixed income landscape through single-ticket solutions. Given the efficacy of their respective investment strategies and the compelling performance exhibited thus far, these solutions may serve as valuable components in an investor’s portfolio.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
