Fidelity Launches 3 Innovative Liquid Alternatives ETFs

Fidelity Dynamic Buffered Equity Fund (FBUF), Fidelity Protected Equity Fund (FHEQ), and Fidelity Enhanced Yield Equity Fund (FYEE). These ETFs cater to the increasing demand of investors looking for safeguards against equity market downturns and enhanced income returns.

Fidelity is entering the market for retiree-preferred candy-like investments, offering a variety of flavors through two Exchange-Traded Funds (ETFs). One ETF focuses on Hedged Equity and another on “Yield Enhanced,” both utilizing options to minimize potential losses. The cost for these funds is 0.48% per year for the first ETF, and 0.28% for the second one.

— Eric Balchunas (@EricBalchunas) April 11, 2024

A team of seasoned professionals oversees each fund, combining a conventional U.S. stock investment method with a custom option strategy to reduce risk or boost returns. Fidelity introduces a lineup of groundbreaking ETFs, offering investors advanced strategies for navigating market turbulence and enhancing their portfolios.

FBUF incorporates the sales of call options and purchase of puts simultaneously thus establishing a strategy within the options space that allows them to ease risk.FHEQ aims to smooth out market ups and downs by purchasing put options, which help protect against drops in the underlying asset’s value.

FYEE is proud of its flexible distribution scheme, which provides varying returns to investors. This achievement is made possible through strategic approaches that help investors manage risk in diverse ways.

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2024-04-12 00:52