Lovely video from Justin Bender (B. Comm, CFA, CFP®, TEP), a portfolio manager at PWL Capital Inc., that looks under the hood of $FEQT to help investors understand why it behaves the way it has, and whether investors should expect that to continue. Prior to watching the video, my understanding of FEQT was that it's a fund-of-funds that utilizes a factor-orientated (or "factor tilt") approach to screen for stocks across various geographical regions within its investment universe, with an additional allocation to global small-caps and Bitcoin. The overall goal of the fund is to ultimately provide investors exposure to a globally diversified, multi-asset strategy designed with the potential (not guarantee) to achieve better risk-adjusted returns compared to a traditional, passive, broad market strategy. But how does FEQT actually go about doing this? Turns out, its structure is much more complex than one might have initially thought! Topics Covered (in 15 min): • How Fidelity selects its stocks • Why Fidelity tilts toward value, momentum, quality and low volatility • How sector weights are adjusted • Why large companies are added back into the portfolio • The role of Bitcoin and active small-cap management • Whether the higher MER is justified • Diversification and tax considerations • What the historical backtests really tell us • A factor regression analysis showing what has actually driven returns Posting to Blossom Social to provide the video additional exposure as it's very well-done, educational, and quite frankly, kilometers/miles ahead, in terms of depth and content quality, in comparison with what you see from the majority of investment-related content across social media: https://www.youtube.com/watch?v=fQJjG_pFcLY
1,860 views
10 Comments
Clantosa @clantosa · 20d
This guy always makes rock solid videos he's great
Regis @mytranslator · 19d
It's great that you posted this video, because I have been reading many times on social platforms that $CAGE was the first factor-tilted product available to Canadians. $FEQT and Fidelity have been doing factors since 2022! 😉
CAPS LOCK ON @theanonymousinvestor · 20d
JUST PICK AN EQT AND BE HAPPY
Kar Yung Tom@karyungtom · 19d
@iamjohn_d I love Justin Bender and as expected, another well-done video. I felt like he gave a really balanced breakdown of it though the YouTube comments are pretty one-sided. They lean "too complex". What's your feeling after watching this, John?
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