FidelityConnects: The ETF roundup with Étienne Joncas-Bouchard

[00:04:11] Pamela Ritchie: Hello, and welcome to Fidelity Connects. I'm Pamela Ritchie. Canada's ETF industry is on pace to surpass its previous annual inflow record with equity ETFs, particularly those focused on international and Canadian markets leading the way. It's a clear signal that investors are leaning into diversified strategies amid shifting global dynamics. Fidelity's expanding ETF lineup has navigated volatile markets with resilience since inception, offering advisors and investors innovative tools to stay ahead. Joining us here today to explore what is driving ETF flows, how Fidelity is positioned, and what you should be watching in the month ahead is Étienne Joncas-Bouchard. Étienne is Fidelity's Director of ETF and Alternative Strategy. Warm welcome to you. Great to see you here from Montreal.

[00:04:59] Étienne Joncas-Bouchard: It's great to be in the studio. It's been a very long time. It's got a little bit of a different feel than Montreal but it's nice to be here.

[00:05:06] Pamela Ritchie: I'll just let everyone know that you can send your questions in for Étienne over the next half hour or so. Also, we are broadcasting right now with live French interpretation so do go ahead and use that. Join us in either official language. Étienne can speak to you in French. I won't understand his answers but that's okay, I'll put the questions to you. What does your studio look like?

[00:05:23] Étienne Joncas-Bouchard: In Montreal we have a little bit of a moving setup but it's great. It's definitely an improvement on just me being in my basement with my webcam. It's got a couple more windows but definitely less tech than here so, hopefully, everything comes out perfectly.

[00:05:37] Pamela Ritchie: It's got a blue backdrop, does it not?

[00:05:40] Étienne Joncas-Bouchard: It does, it does. It's actually in one of our conference rooms. We try to set it up as best as we can. It's fun to be in Toronto. I guess maybe I'll even start by apologizing to all Blue Jays fans because I attended my first Blue Jays game in maybe four years and they broke their longest winning streak in history.

[00:05:56] Pamela Ritchie: Don't go again.

[00:05:57] Étienne Joncas-Bouchard: I'll take some of the blame, apologize to Blue Jays fans. But no, it's great to be in Toronto.

[00:06:02] Pamela Ritchie: You do ton of podcasts, actually, what are the names of some of the podcasts you do?

[00:06:05] Étienne Joncas-Bouchard: Rght now we've actually kind of relaunched a podcast. We used to have a show called the Fidelity ETF Exchange and just last month we launched our first episode of what we call Ticker Talk now. Being here in Toronto we're actually going to be recording our next episode a little bit later today. Please, everybody check that out. It's a video podcast as well so a bit of a different feel to it. We answer internet questions. We, obviously, bring in guests from Fidelity, we also try to bring in external guests as well so just a different vibe a little bit, but it's definitely fun to do and we're really excited about building that out over time.

[00:06:40] Pamela Ritchie: You're building a lot of things out, actually. You're adding to your team, I hear. Let's talk about ETFs, the expansion. We're going to talk about the flows, especially. You're building a bigger team, though, as well, right?

[00:06:52] Étienne Joncas-Bouchard: Well, thanks to everybody who's probably listening in today, obviously, we've had tremendous growth in our assets under management on the ETF side so far this year. Just at Fidelity we're talking more than $5 billion in net new assets and that was, I guess the culmination of that was June which was one of our best months ever at around $1 billion in net new assets, putting us in second place in terms of providers in Canada for the month. That's somewhere where maybe three, five years ago we were dreaming of. We're really excited about that. That also means, though, we've got to provide more insights, more content, more support to all the advisors that are actually supporting and buying some of our products. Yes, we are expanding the team. We've now got dedicated ETF strategists in each region that we cover which is, I think, fantastic. Once again, we just want to make sure that, one, the message that we're getting out is clear and that we're providing the right insights to our clients, and then just offering more research around all the products that we have, which is now more than 50 ETFs.

[00:07:54] Pamela Ritchie: Amazing. We're going to go around the world a little bit, ask you about the international trend that we've seen for investing, but first let's talk about flows. I think we'll put the first chart up here. We've got a chart to help guide us through this. It's been an extraordinary time. You can look at it on a year-to-date basis. Considering what has happened year- to-date, take us through a little of what you've seen.

[00:08:16] Étienne Joncas-Bouchard: It's been an extremely strong year for the Canadian ETF industry. Obviously, this is not just Fidelity, this is the entire industry. Like you mentioned in your introduction, we're well on pace for a record year at 54.8 billion year-to-date as of the end of June. If we were to take that times two it would be more than 25 billion more than previous years, which I think is quite astounding. June was slightly less than previous months, which is kind of normal as we roll into the summer months, it feels like everything just slows down a little bit. But still, $7 billion in net new assets is non-negligible. Some of the key trends that we've highlighted so far this year have continued. We've seen international equities continuing to lead the way in terms of the three main regions being U.S., Canada and international, international including as much the developed side, so like Europe, Asia Pacific, as well as emerging market economies. All those equity mandates that invest in those areas of the world have been really popular so far this year with about 60% of the total equity component, and that continued in June with $2.2 billion coming in. I think that's the main story.

[00:09:22] Other little maybe kind of more niche stories, if you will, on the fixed income side it was a slower month with $1.4 billion in June. A lot of that was kind of rotations and additions into more duration-focused products. As yields have increased over the past month or so you've seen ... every time the 10-year or 5-year goes up by 10, 20 basis points you start to get more bids. Somebody's now willing to take on those bonds that are yielding 4.5%, 6%, 5%, 6% in certain cases, whereas maybe when rates were coming down and the yield curve had kind of rallied, if you will, there was a bit less appetite. Now we're seeing cash alternatives once again being sold to buy longer term maturity and duration products.

[00:10:08] Pamela Ritchie: What about crypto? We can put that up for one more second. Just take us through the crypto story because it's also been taking over the reins, it seems, from gold.

[00:10:18] Étienne Joncas-Bouchard: Gold's had quite a run also. It has been very popular as well. You've seen some of that slow down a little bit but definitely the crypto space is kind of surprisingly low, to be quite honest, in terms of flows. A lot of the flows have been led by direct investors, discount brokerages and such. We see that here at Fidelity just from an advisor channel perspective. It's not as simple or as easy to say if I'm a discretionary advisor I can't necessarily just put Bitcoin everywhere in my model. It's a bit more of a challenge on that front.

[00:10:50] Nonetheless, you've seen positive flows but I would have expected with the rally that we've seen and the all-time highs we've hit in both Bitcoin and Ethereum, that we would have seen more demand. That being said, there has been a bit of product innovation as well.  There was a Solana ETF that was launched this year. I think we might start to see a bit more alt coins or, I don't want to say meme coins, there's other words, maybe less nice words for them but...

[00:11:12] Pamela Ritchie: There's a whole other meme story going on right now but we'll talk about that later.

[00:11:15] Étienne Joncas-Bouchard: It's been a growth area but it's not to the pace that we've seen in the U.S., for sure. In Canada it's a bit more mature, it seems like.

[00:11:22] Pamela Ritchie: That's super interesting. It's also been around a little bit longer. I wonder if we can take a look at the phases. The year-to-date number is one number but it's quite fascinating what the investments, the ETFs that you oversee have done through the dips and rises over the course of the last now seven months of this year. It's been a little of a wild ride.

[00:11:46] Étienne Joncas-Bouchard: It's been an interesting year, for sure. It feels like we've gone through three main phases, to say the least, and, obviously, with the lineup that we have, we've structured it as heavily focused on factor investing and various equity factors such as high quality, value, low vol, momentum, dividend. Those different factors, obviously. behave very differently through various market cycles. You've already seen this year there's been three mini-phases. If we throw of slide 5, it's a great way to also explain attribution on, say, our All-in-One ETF portfolios which include all the different factors.

[00:12:23] Pamela Ritchie: So we walked into the year and momentum was still going from really last year.

[00:12:28] Étienne Joncas-Bouchard: The way that we identified — and this is from our partners at FMR who we work with very closely, who are our quantitative index solutions team headed by Bobby Barnes, who many of you might have heard from before and is a great partner for us. We have the chance to chat with him very often and sometimes, actually often, they produce really cool slides. This one I particularly loved. Basically, the three different phases that we've identified is trend continuation. As you mentioned, basically, what worked in 2024 continued to work for the first couple months of the year. You saw momentum as well as high dividend do quite well to start the year. Then as we went into the tariff tantrum, which is, obviously, initiated by, you know, we had Liberation Day and all this going on which lasted about a month and a half to two months in anticipation of, and then the actual day of it happening, you saw momentum, basically, being the one factor that underperformed and all the other factors...

[00:13:28] Pamela Ritchie: And look at that — falls off the cliff.

[00:13:29] Étienne Joncas-Bouchard: Exactly. This is looking at the U.S. and it's looking at the Russell 1000 and then each one of those factors on a relative basis to the Russell 1000. When we see the red line for momentum being at the bottom at -6%, that was like a 6% underperformance relative to the benchmark. On the flip side, though, things like low volatility worked extremely well, value, dividend, even quality to a certain extent. Those factors which maybe had been a bit less popular in the last year or so now became more attractive because their fundamentals looked really good. It's just they weren't part of that wave of just consistent buying into the same types of names, the same type of sectors, and performed really well.

[00:14:12] Then you had that 90-day tariff pause rally, or however you want to call it, where bullish momentum really came back strong. What you saw is everything that had worked in the tariff tantrum started not to work post, because everything that we were looking for was beta. You saw momentum rally significantly but then you see, on the flip side of that, low volatility which was the best performing for that previous two month period, now being the worst performer. Everything that was more defensive like utilities, staples, staples actually was a little bit better than other sectors but utilities, definitely, and some of the more defensive sectors really had a bit more of a challenging time as the trade just went right back to what had worked last year.

[00:14:55] Pamela Ritchie: The All-in-Ones have, is it an equal weighting to the different factors? You use all of them all of the time so that if something suddenly happens, like Liberation Day or perhaps the V-shape coming out of that, you're able to kind of capture a smoother ride. Just tell us how you work that, or why you do that, I guess.

[00:15:15] Étienne Joncas-Bouchard: Actually, maybe we can throw slide 4 on to the screen for our audience. Once again, every time I'm here we'll throw the slide on so everybody's pretty used to it. It's just to highlight the various portfolios that we have on the All-in-One ETF suite, if you will. As you can see on the factor side, maybe just looking at FEQT, our All-in-One equity, for example, it's easier to see the equity component but the equity component is mainly consisting of our four main equity factors and they're invested in an equal-weight approach for a few reasons, one reason being we're not trying to make tactical asset allocation calls on a style basis as much as on a geographical or an asset mix basis, but holding each one of these factors over the long term will generally give us a smoother ride because of exactly what we just explained with regards to the phases.

[00:16:06] Nobody wanted to own a low vol going into the year because markets were doing super well, but then something happens. It could be a geopolitical event, it could policy change like we saw in the U.S., it can be monetary policy changes but you have these events and situations where you can have a very sharp shift in which style works. For example, low vol was extremely useful for us in Q1, not so much in Q2. That's why we also own momentum and didn't sell out of momentum when it wasn't working for a three-month period. We consistently try to rebalance those through flows but then also once a year we really go back to this initial neutral mix that we see on screen here.

[00:16:50] Pamela Ritchie: Tell us a little bit more on the factors themselves. It's strategically done so that you are capturing all styles, essentially, at all times. Is that correct?

[00:17:04] Étienne Joncas-Bouchard: The way that it's constructed, the methodology, there's some parts that are extremely similar. They have the same investment universe, they also have the sector allocation methodology with a few little tweaks. The real difference is the way that we select those individual stocks by style. Which criterias are important for value, they're not the same criterias that are important for momentum, not the same criterias that are for low volume and so on and so forth. What ends up happening is even if you're picking out of the same pool you're going to end up with much different holdings in that, say, 100 stock portfolio for our U.S. factors. The thing that is the most interesting, obviously, is we're looking at fundamental characteristics. Momentum is looking at price momentum and kind of trends, that's a little bit different. But the others you're looking at things like for value, free cash flow yield, you are looking at EV to EBITDA, you're looking at forward price-to-earnings, price-to-tangible book. Those are metrics that display value characteristics and they're unbiased in the way that we select them.

[00:18:06] These are the four metrics that we look at, you screen well you'll probably be in the portfolio, you don't screen well you won't be in a portfolio. It creates these very diversified stock portfolios where the factors themselves, some of them have, it's not negative correlation because they are just, I mean, say our U.S. quality and U.S. value ETF, they're both 100 stocks, they are both U.S. large-caps and mid-caps so they will correlate, but their excess returns relative to the benchmark have negative correlations on some them. When value's outperforming, generally, quality's underperforming and vice versa. You put all that together, you add the geographic diversification as well, you add fixed income and similar products and that's really where the strength shines, if you will, in our All-in-One ETF portfolios. You're covering kind of all different boxes, if you will, or checking all the boxes.

[00:19:00] Pamela Ritchie: One of the examples, probably, of momentum right now, and it's a different kind of momentum, is there's, meme stocks are going crazy again like they did in 2021. Sometimes that has certain signals and there's some different things to back then but in any case, what happens ... because you're active you may not be choosing some of those names, maybe just give us a bit more on how you choose stocks, how you stay away from other ones.

[00:19:24] Étienne Joncas-Bouchard: Actually, the period where we have kind of this — I don't want to say euphoric — but when you have this really positive momentum around a lot of names that don't really screen well from a fundamental standpoint, they've become very popular, they have momentum, maybe expectations have risen rapidly where growth expectations went from 20% to 200%, there's no way for us to fundamentally capture that with a factor methodology other then through momentum, potentially. If they do become very profitable eventually, quality, it might make sense and so on and so forth but that's actually usually a phase where — if I were to look at where is it a bit more of a challenging environment for our portfolios, it's during those initial kind of junk rallies or relief rallies post the correction. We'll rarely own as much of those names as an index would or a market cap-weighted index would.

[00:20:18] For example, you mentioned early 2021 when you have GameStop and AMC and all those names, they're a very, very small part of the index  and then they have outsized returns. That's a period where we might lag a little bit. Where we really do well is definitely in kind of the later parts of the cycle but then just in a regular environment where investors may be a bit more rational and are rewarding companies based off of one result but also their fundamentals being strong, so whether that's profitability, evaluation, et cetera.

[00:20:50] Pamela Ritchie: A valuation growth path, it's just a little smoother than what you're watching right now.

[00:20:53] Étienne Joncas-Bouchard: Exactly. If I look at, say, like our All-in-One equity, it's usually going to have a downside capture of about 80% to 85% of, say, an MSCI World Index. On the upside, though, it is about 95%. We don't necessarily capture exactly the upside. This is coming from a lot of the conversations I've had with advisors over the years, if I'm managing a portfolio for retail clients and we are in a situation where markets are going up by, say, 30, global markets, equity markets are up 30% but I'm up 28, that's generally not when things are challenging. When it's challenging is when markets are down 20 and you have a portfolio that's down 26. That's significantly harder to explain for clients and, hence. why the construction approach that we have in our portfolios is to say, let's help you out as much as we can during the tougher times and, yeah, maybe if we miss out a little bit of the upside and kind of the really exuberant upside parts, that's something we're willing to accept.

[00:21:49] Pamela Ritchie: That's something you're willing to accept. Have you noticed trends or can you tell us about anything where you've seen certain things go in and out of favour? An all-equity sleeve, you just explained that, that seems to be extremely popular. There are also ways that clients get exposure to, perhaps, a sector or they want to just add ... do you find there's a bit more of a wanting of a diversification rather than adding up different, perhaps, sectors or different styles like that? What's shifted?

[00:22:18] Étienne Joncas-Bouchard: Actually, we didn't mention it in the initial flows and trend part but there's something that we've seen over the past couple of months, we've seen a decline in demand for sector specific ETFs. Some that were very popular in Canada were bank ETFs, you had energy ETFs that were just investing in the Canadian energy sector. Those have been a bit less popular. Those are also two kind of cyclical sectors so maybe there's a correlation there but just...

[00:22:43] Pamela Ritchie: There's an oil price story, perhaps, that could also be part of it.

[00:22:46] Étienne Joncas-Bouchard: There's probably many different things impacting it but in the sense that we've seen more demand for these core solutions, and, actually, we've also seen it on our All-in-One equity ETF portfolio, which is like a global diversified equity portfolio. We've seen more demand into that as say, instead of buying five, six different lines to get my global equities maybe I'll just use this as a core allocation and then maybe a few little things around it. In terms of wanting to add diversification, that kind of brings me back to the demand for international. I don't want to overgeneralize but it's something that we probably don't own a lot of as Canadians, in general. We generally own a lot in North America and a lot of Canada, which is a domestic bias which is traditional for any investment market globally, but international developed markets represent about 25% of the global stock market. It's very rare to find a Canadian investor that owns that much. This year, with the performance that we've seen in those markets, as we saw flows and demand go up we've definitely seen an increase in demand on our end as well with some of our products that we have on that side.

[00:23:51] Pamela Ritchie: What are the parts that you have on that side, what is the main...

[00:23:56] Étienne Joncas-Bouchard: We have each individual factor that are part of the All-in-One ETF portfolios but then last year, once again, we're trying to follow the demand and follow what our clients are telling us, we created our All-International Equity ETF. The ticker is FCIN.

[00:24:11] Pamela Ritchie: We have a slide on that, I think it's 2.

[00:24:11] Étienne Joncas-Bouchard: We do have it in a fun version as well. I don't know the code by heart, unfortunately, but what we've done is a similar approach to the All-in-Ones but let's say somebody just wants international equities, can I just buy all four of your factors in one ticker? That's kind of the rationale of how we got here. We built it with an equal-weight approach similar to what we did to the All-in-Ones. The objective of this one, and the reason why I particularly like this one, is because the international market is, generally speaking, less concentrated and less efficient than, say, a U.S. market. When I compare — because we have a Canadian and a U.S. version but this international one stands out from a consistency basis. These are indices that we can look at and backtest, there seems to be a story about consistency with international markets where you're picking ... the MSCI EAFE index is more than 1,500 stocks, it's not 500 like the S&P 500.

[00:25:06] Pamela Ritchie: That's a lot.

[00:25:07] Étienne Joncas-Bouchard: The largest stock is a little bit more than 2% SAP and it allows us then to create more active share. Historically, creating more active share generally leads to strong — and this is from academia, it's not something I'm just throwing out of thin air — generally, higher active share is a good indicator of excess returns and consistency of excess returns. When I look at that, our All-International Equity ETF, we've launched it only last year, obviously, so not a lot of live track record but it's not exactly what we want which is protecting periods of a bit more volatility but then definitely do well as well as markets rallied internationally. We can see that on the next slide, just the live performance for those that want to see.

[00:25:48] So something that we're really proud of, we're really happy with, and I think it's resonating with advisors right now. It's one of our most popular products that we have right now. Definitely reach out to any of your sales representatives if you want more information on it in terms of kind of that consistency in returns that I've been talking about. We've got data to support it.

[00:26:07] Pamela Ritchie: It's fascinating. We heard overnight that the U.S. has done a trade deal with Japan and much lower tariffs than had sort of been feared, a whole piece of how Japan can and should and will be directed to invest in the U.S., and that's the deal itself. It's caused a big upswing, actually, in the UK. We've seen Japanese stocks do very well off this. Is Japan involved in what you invested?

[00:26:34] Étienne Joncas-Bouchard: Absolutely. For all of our international mandates, and I guess it's kind of broad stroke, if you will, but in the sense that we're neutral to super regions, not by country, but super regions. For example, the UK, developed Europe, then we have Asia-Pacific is kind of the same thing, Australia and New Zealand. We're staying neutral to those regions. By doing that, in all of our international products we own quite a bit of Japan because it is one of the largest international developed economies. Anywhere from 20 to about 30% of our international portfolios, and in FCIN  I'd have to double check but it's probably somewhere in between 20 and 30%.

[00:27:14] Obviously, it's a great thing when Japan is going because it is a big motor of international developed markets. There's some very sizable firms as much on, say, discretionary side as on the industrial side, even on the financial side as well. We definitely love to see that. This holds true for our index as well, though. Our benchmark will have a lot of Japanese names as well so ideally what we're doing is yes, we hold Japan and ideally we're picking the better stocks in that Japanese market that are benefiting from these changes in the tariff policies, obviously, that you mentioned, which are good for them to have a signed deal and get beyond that. Hopefully, we're next.

[00:27:56] Pamela Ritchie: Exactly. Lots of questions coming in for you, Étienne, have a sip of water, we'll put these to you. What trends could result in a bullish call for longer duration bonds? You certainly have exposure to bonds through some of the All-in-Ones and you've upped that recently but the longer duration story, it's hard for everyone, I think.

[00:28:17] Étienne Joncas-Bouchard: I feel like we've been waiting for that capitulation moment since 2022 and it hasn't quite come. You've had these little periods of rallies but I think what we need is inflation expectations to really, really fall off. Right now you've started to see inflation prop back up a little bit in the U.S. Canada. I mean, I feel like regardless of what we do from a monetary policy standpoint it's getting very hard to actually maintain and hit the 2% target of inflation. Whereas the U.S., it seems like that's more of a challenge and, hence, why Jerome Powell and the Fed have been maybe a bit sticky in their approach with regards to lowering rates, to the great dismay of the U.S. administration. I think that's really what needs ... 5-year inflation expectations have been propping up, 1-year inflation expectations were propping, it's going to be hard for long term rates to fall if inflation continues to rise.

[00:29:11] Pamela Ritchie: Will ETFs be available in U.S. dollar denomination for U.S. dollar account?

[00:29:17] Étienne Joncas-Bouchard: Some of our ETFs are. We're always trying to give more options. Recently we launched fund series of some of our products, which isn't a U.S. series but fund series, so if somebody wants to buy in series F, series B it's something we're continually looking at, especially for the All-in-Ones. We're definitely taking a look at it. Right now we do have U.S. options for our factors so if you want to buy our U.S. high quality ETF you can buy it in U.S. dollars. Same thing for our value. We do have some products that are available in U.S. dollars and we have a list on our website that you can look at for all your USD options.

[00:29:56] Pamela Ritchie: I wonder if we can just go back to the performance slide which is number, I've forgotten what number that is now.

[00:30:06] Étienne Joncas-Bouchard: Maybe 6 for the All-in-Ones. This one we haven't had a chance to show.

[00:30:12] Pamela Ritchie: Let's take a look at this because it just goes back to it's been a pretty extraordinary time.

[00:30:20] Étienne Joncas-Bouchard: It's been good.

[00:30:22] Pamela Ritchie: Well done.

[00:30:22] Étienne Joncas-Bouchard: It's my favourite slide.

[00:30:24] Pamela Ritchie: Étienne, well done.

[00:30:24] Étienne Joncas-Bouchard: My favourite slide. It's been a very great adventure I'd say, so far, with regards to the All-in-One ETF portfolios. When we launched them initially we...

[00:30:35] Pamela Ritchie: What year again, remind us.

[00:30:36] Étienne Joncas-Bouchard: 2021 for FBAL and FGRO, and then 2022 for FCNS and FEQT. Just more recently we launched the two more conservative ones in January. The idea was we wanted to create a portfolio that was kind of the ... we weren't the first movers in the ETF space with regards to ETF portfolios. There's other competitors that have been out there for a long time but they were all kind of doing the same thing. Our idea was to say, we've got all these great building blocks, we've got all these great tools that we can use to create what we see as more diversified portfolios that give us a chance to add value to outperform over time. That's done through the various factors, through some of our active management that we have in the portfolios. We didn't mention it today but we have in the past, we have an allocation to our global small-cap opportunities ETF, which is a great mandate managed by 2 PMs here in Canada. We took a different approach, one of product differentiation, not of cost differentiation. We're not the cheapest by any means but when you look at it, you add everything up, you remove our 40 or so basis point fee in the portfolios, the results have been great. We've gone through, since 2021, very different markets.

[00:31:48] Pamela Ritchie: 2021 is, basically, still coming out of the pandemic. That was still...

[00:31:52] Étienne Joncas-Bouchard: That was ,actually, probably I'd say the most challenging year because of what we mentioned earlier. It was a junk rally Q1 of 2021, a lot of things that people thought were going to go away during the pandemic survived and then all of a sudden they're all going up. It's funny, when we launched the portfolios the toughest quarter we've had was the first quarter ever. Obviously, you're thinking, you're like, okay, interesting. It's just a quarter but it's something new so you're always keeping an eye on it. As we progressed we really saw the true value add of the portfolios. Through 2022, which was a very challenging environment, definitely did very well. Our value factors did exceptionally well, some of our low vol products did well. When we moved into 2023 and 2024 it was kind of a continuation of that strong performance. We're really happy with them and we're very happy that everybody's kind of jumped into that because 75% of our total flows are going into our All-in-One ETF portfolios.

[00:32:47] Pamela Ritchie: Just say that again, 75%.

[00:32:48] Étienne Joncas-Bouchard: Yes, and this is looking at June so maybe it's kind of ... I don't want to over-generalize for the whole year or the past couple years, but in June 75% or so of our total inflows, which is about a billion, went into our All-in-One ETF portfolios.

[00:33:05] Pamela Ritchie: We look to the performance there, slide 6, we could put it up or we don't have to,  the idea that you've done all of this and all of the strategies and what you've done and there is not an overweight to the Mag Seven, actually, which is interesting because that has been what has powered equity markets in the United States. I mean, it's just a true statement.

[00:33:25] Étienne Joncas-Bouchard: That's a nice thing to have kind of in our back pocket.

[00:33:30] Pamela Ritchie: You've done well anyway.

[00:33:31] Étienne Joncas-Bouchard: Absolutely. Every month, every quarter, every year it's different parts of the portfolio that are contributing which is just reinforcing that the construction process that we've put together is very sound. If we even just go back to this year, the first two months our U.S. momentum ETF was doing really well, U.S. value ETF was doing really well. Then momentum fell off in the other quarter and now momentum's really what's carrying the ship along. Bitcoin's helped a little bit, that's another allocation that we've included to the tune of 0.5 to 3% in the portfolios.

[00:34:04] Pamela Ritchie: From the get-go.

[00:34:05] Étienne Joncas-Bouchard: From the get-go which is also something that was fairly unique. All those things together, we've managed to navigate various different markets, some that are more challenging, some that are a bit easier, without necessarily being crowded into a certain trade or making a certain call. These are strategically managed so keep in mind we didn't overweight the U.S. to outperform, it comes down to the security selection through the factors, for the most part.

[00:34:31] Pamela Ritchie: Well, we're going to see a lot more of you, Étienne. Congrats so far. Keep doing what you're doing, it's, obviously, going well. Glad to see you here today in the studio.

[00:34:39] Étienne Joncas-Bouchard: Very happy to be here.

[00:34:39] Pamela Ritchie: Étienne Joncas-Bouchard joining us today. Coming up on Fidelity Connects tomorrow, Director of Quantitative Market Strategy, Denise Chisholm. She'll share her latest market thesis, what sectors she's keeping an eye on. We're going to go deep into the discussion of CapEx. What a strong CapEx cycle means, ultimately, going forward, that's bullish, she'll take it through her research on that. It's fascinating.

[00:35:00] We'll end out the week with Fidelity equity research analyst, Cameron Ho. He focuses on U.S. retail. He's going to take a bit of a deep dive into the apparel part of that story with you. He'll let us know consumer trends that he's tracking and, ultimately, how ongoing trade and tariff developments are impacting this overall sector, the retail sector.

[00:35:19] Then on Monday, Director of Global Macro, Jurrien Timmer, he joins us to dive into the latest macro themes on his radar with amazing charts and graphs he'll prepare for you and share all of that with you on Monday to set out your week of trade ahead. Thanks for joining us here today. We'll see you soon. I'm Pamela Ritchie.