ETF Launches: FCPI

Fidelity ETF targets stocks benefiting from inflation.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

 


FEATURED ETF
Fidelity Stocks For Inflation ETF (FCPI)
New fund seeks to target sectors and stocks that do well as inflation rises

In November, Fidelity launched an equity ETF that is supposed to outperform the broad market in times of increasing inflation via a factor-based strategy. The Fidelity Stocks For Inflation ETF (FCPI) tracks an index of large and midcap U.S. stocks offering exposure to the value, quality and momentum factors.

FCPI comes with an expense ratio of 0.29% and lists on Cboe Global Markets, the parent company of ETF.com.

The fund aims to capture the performance of companies in segments of the market that have typically exhibited above average performance during times of increasing inflation.

FCPI tracks the Fidelity Stocks for Inflation Factor Index, which has a structural tilt toward inflation-sensitive sectors. The index selects its roughly 100 components based on their factor scores from the largest 1,000 stocks in the U.S. market.

Components are equal weighted, with their weights then adjusted upward if they fall into certain sectors such as energy, materials, consumer staples, health care, real assets and infrastructure.

In early December, the fund included Microsoft, LyondellBasell Industries and Steel Dynamics among its largest components.

FCPI joins Fidelity’s family of 28 ETFs, which have a total of more than $17 billion in assets under management.

Source: ETF.com. Data and information as of 11/30/2019.
ETF Filings sidebar covers launches and closures for the month of November 2019.

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.