Using low volatility factor ETFs

Low-volatility investing focuses on providing returns similar to the broader market over time with less volatility — a smoother ride. Stocks with stable revenues and earnings are also less susceptible to recessions and other macroeconomic events. Low-volatility stocks tend to hold up better when markets decline rapidly, but they may lag during strong market rallies.

What is a low-volatility factor?

The low volatility factor targets securities with lower risk than the broader market, as well as stable earnings. They have historically produced higher risk-adjusted returns over time.

  • Typically defined as price volatility
  • Common ways to measure volatility is to screen for stocks based on the historical volatility of their prices and earnings

Why does it matter?

Investors seek returns similar to those of the market over time, but desire more consistency, making low volatility a compelling factor

During market declines, low-volatility portfolios tend to experience smaller drawdowns, providing the benefit of compounding positive excess returns

The benefits of the lower-volatility approach can also be achieved by investing in companies with more stable fundamentals, which are less susceptible to declines during recessions and other macroeconomic events

Fidelity Canada Low Volatility Index ETFs

Fidelity Canadian Low Volatility Index ETF

Ticker symbol

Learn more →

Fidelity U.S. Low Volatility Index ETF

Ticker symbol

Learn more →

Fidelity U.S. Low Volatility Currency Neutral Index ETF

Ticker symbol

Learn more →

Fidelity International Low Volatility Index ETF

Ticker symbol

Learn more →

Fidelity for value factor-based investment strategy

At Fidelity, our value factor funds seek to track the performance of tailor-made indexes that are actively designed. The Fidelity Canada Value Factor Index is designed to reflect the performance of stocks that have attractive valuations. Typically, cheap stocks, with low prices relative to fundamentals, have historically outperformed the market over time.

Single-factor exposure to companies with lower volatility than the broader equity market

An outcome-oriented approach that seeks to provide market-like returns with lower volatility

An efficient complement to a well-diversified portfolio

ETF education centre

Gain a deeper understanding of factor investing at the Fidelity education centre.

How to buy Fidelity ETFs

Make the most of your hard earned money with Fidelity ETFs.

Commissions, fees and expenses may be associated with investment funds. Read a fund’s prospectus or offering memorandum and speak to an advisor before investing.  Funds are not guaranteed, their values change frequently and investors may experience a gain or loss.  Past performance may not be repeated.

Read our privacy policy.  By using or logging in to this website, you consent to the use of cookies as described in our privacy policy.

This site is for persons in Canada only.  Mutual funds and ETFs sponsored by Fidelity Investments Canada ULC are only qualified for sale in the provinces and territories of Canada.


Close Search