Yahoo Finance How can you use Fidelity All-in-One ETFs to build a portfolio that works for you?
Building a comprehensive, diversified portfolio can be a daunting task, especially for younger and self-directed investors. But it doesn’t have to be complicated or costly to get this important financial foundation in place. Fidelity All-in-One ETFs offer simple, easy-to-use, comprehensive portfolio coverage, all with the convenience of a single suite of ETFs.
Let's explore how you can leverage these All-in-One ETFs to create a more sophisticated portfolio, and establish a strong foundation for your long-term investment goals in the process.
Invest smarter, not harder
One of the most common mistakes investors can make is relying solely on their own limited knowledge and expertise when selecting individual investments. Wealthier investors often turn to financial advisors to design their portfolios—which may not be an option for investors who are just starting out, or prefer to take a more hands-on, DIY approach.
For these investors, and many others, Fidelity All-in-One ETFs offer a simple alternative, providing a hassle-free way to reallocate your investments into a diversified portfolio.
Take advantage of the strategic flexibility
Every investor has their own unique set of financial goals. That's why having the flexibility to cover different market sectors while still designing a comprehensive portfolio is important.
Each of Fidelity's All-in-One ETFs can also serve as the foundation for a more sophisticated “core and explore” strategy. As an increasing number of investors are becoming interested in owning alternative asset classes, such as cryptocurrencies, it can be challenging to maintain a safe balance between the growth benefits and risk factors within a given portfolio.
Fidelity All-in-One ETFs added a small strategic exposure to cryptocurrencies, which can be anywhere from 1-10% depending on which All-in-One ETF you choose. This added diversification gives investors a potential for higher returns, all within the context of a diversified yet flexible portfolio that spans global, multi-sector markets. Meanwhile, expert fund management is incorporated into the design of each of Fidelity’s All-in-One ETFs.
Maintaining a well-diversified portfolio often involves managing a careful mix of assets. However, attempting to handle the complexities of rebalancing on your own can be time-consuming, costly, and overwhelmingly complicated. When you're just starting out as an investor or have limited capital to allocate, the burden of high fees can be a significant setback.
By incorporating factor ETFs — including low-volatility, high-quality, value and momentum stocks — Fidelity All-in-One ETFs can help seek to maximize your returns while preserving the convenience and accessibility of ETF investing.
Maximize the potential of your TFSA
Have a Tax-Free Savings Account (TFSA)? You’re not alone. 42% of Canadian investors aged 25 to 34 make use of these TFSAs to help boost both their short- and long-term savings and investments.
This is particularly true if you anticipate needing access to your investment capital or returns prior to retirement. Unlike Registered Retirement Savings Plan (RRSP) withdrawals, you can use your TFSA to withdraw any returns from a Fidelity All-in-One ETF tax-free and use it to help fund major expenses, like purchasing a home or buying a car. And because your investments inside the account grow tax-free, any money you earn within the account will continue to compound year after year. It’s just one more way Fidelity All-in-One ETFs can help you build towards your financial goals, whatever those may be.
Visit Fidelity.ca to learn more about how you can use Fidelity All-in-One ETFs to unlock a complete portfolio solution, all in a single investment.
This article has been sponsored by Fidelity Investments Canada ULC.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
The management fees directly payable by Fidelity All-in-One ETFs are nil. The ETFs invest in underlying Fidelity ETFs that charge a direct management fee, and as a result, pay an indirect management fee. Based on the management fees and the anticipated weightings of the underlying Fidelity ETFs, it is expected that the effective, indirect management fee for Fidelity All-in-One Conservative ETF will be approximately 0.34%, Fidelity All-in-One Balanced ETF 0.35%, Fidelity All-in-One Growth ETF 0.37%, and Fidelity All-in-One Equity ETF 0.38%. Actual indirect management fees will be reflected in the management expense ratio in addition to applicable taxes, fixed administration fees, trailing commissions, portfolio transaction costs and expenses, as applicable, of each ETF/Fund, posted semi-annually.
Each of the Fidelity All-in-One ETFs has a neutral mix, which includes a small allocation to Fidelity Advantage Bitcoin ETF™ ranging between 1% and 3%. If each portfolio deviates from its neutral mix by greater than 5% between annual rebalances, it will also be rebalanced. Such rebalancing activity may not occur immediately upon crossing that threshold but will occur shortly thereafter.
The investment risk level indicated is required to be determined in accordance with the Canadian Securities Administrators standardized risk classification methodology, which is based on the historical volatility of a fund, as measured by the ten-year annualized standard deviation of the returns of a fund or those of a reference index, in the case of a new fund.
The statements contained herein are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, we cannot guarantee that it is accurate, complete or current at all times. It does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Fidelity Investments Canada ULC and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.
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