Today, Fidelity Investments Canada launched Fidelity Equity Premium Yield ETF.  Portfolio manager Eric Granat, along with Fidelity Director of ETF’s Andrei Bruno join the program to discuss the fund’s genesis, objectives, and how it may fit into a client’s portfolio. Andrei says this new ETF product provides an option for investors who are seeking exposure to an equity and options-based investment strategy that can generate potentially higher levels of cash flow compared to equity-only strategies. Eric adds the new fund produces an attractive level of yield, while balancing upside opportunity. He says the balance of annual dividend is 6 to 8% to allow for equity appreciation, which could create alpha compared to other products. Eric says competitors typically trade or sell options against the equity once a month while Fidelity does it on a weekly basis. He says they use a laddered strategy - holding at least 4 options with different strike price and expiry dates.

Recorded on September 26, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

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