ETF strategies for the fourth quarter – Vince Kraljevic

In today’s episode, Vince Kraljevic joins us to discuss ETF strategies for the fourth quarter, highlighting common misconceptions about ETFs, and how active management is reshaping this space. Vince talks about how falling interest rates could boost small and mid-cap stocks, with his team screening smaller companies for hidden opportunities within the Russell 1000. With a quality focused approach, the fund prioritizes financially sound companies with sustainable business models, helping mitigate risks in rising rate environments. In passive ETFs, there’s a concentration risk around the major tech players. Vince details how active ETF strategies rebalance to avoid overexposure to these stocks, instead focusing on factors like value, quality, and low volatility. Vince also explains that Canada is at the forefront of active ETFS – with 40% actively managed versus only 5% in the U.S. These active ETFs aim to diversify holdings, helping investors avoid concentration risk often associated with passive investing. He closes off by talking about how the fund is currently integrating AI and sector trends – such as renewable energy - by adjusting allocation to capture stable growth areas like industrials, utilities, and energy infrastructure.

Recorded on November 1, 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.

For a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.