The Cboe S&P 500 2% OTM BuyWrite Index tracks the performance of a hypothetical 2% out-of-the-money buy-write strategy on the S&P 500 Index. The buy-write strategy is based on buying positions indexed to the S&P 500 Index and writing near-term S&P 500 Index call options.
Fidelity Equity Premium Yield ETF aims to provide income and long-term capital growth. In implementing an options-based strategy that aims to enhance cash flow and mitigate overall portfolio volatility, the ETF sells (writes) call options on an index representing the performance of companies with large market capitalizations, such as the S&P 500 Index. The ETF’s ability to provide distributions to unitholders will depend on the yield available on the equity securities held by the ETF and the premiums received with respect to its written call options. There is no guarantee that the ETF will make regular distributions to its unitholders or that distributions to unitholders will remain consistent, and the amounts distributed to unitholders could vary based on the market or economic environment and other factors. Distributions in excess of the ETF’s current and accumulated earnings and profits will be treated as a return of capital, which is a distribution from the unitholder’s investment principal rather than net profits from the ETF’s returns. Therefore, any portion of a distribution that is characterized as a return of capital should not be confused with the ETF’s “yield” or “income.” Writing call options also involves risks, including that the ETF may be required to sell the underlying asset or settle in cash an amount of equal value at a price below the market price at the time of exercise of an option. The premiums associated with writing covered call options may not exceed the returns that would have resulted if the ETF had remained directly invested in the securities subject to call options. Please read the ETF’s prospectus for more details of these and other risks.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund or ETF's prospectus, which contains detailed investment information, before investing. The indicated rates of return are historical annual compounded total returns for the period indicated, including changes in unit value and reinvestment distributions, and do not take into account any charges or income taxes payable by any security holder that would have reduced returns. Mutual funds and ETFs are not guaranteed. Their values change frequently. Past performance may not be repeated.
A return of capital reduces an investor’s adjusted cost base. Capital gains taxes are deferred until units are sold or until the ACB goes below zero. Investors should not confuse this cash flow distribution with a fund’s rate of return or yield. While investors in Fidelity’s tax-efficient series (Tax-Smart CashFlow) will be able to defer some personal capital gains, they must still pay tax on capital gains distributions that arise from the sale of individual holdings by fund managers, and on interest and dividend distributions. Tax-Smart CashFlow will also pay a year-end distribution that must be reinvested in additional securities of the applicable fund. The monthly cash-flow distributions on Tax-Smart CashFlow are not guaranteed, will be adjusted from time to time and may include income.
The charting tool is for illustrative purposes only and it does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance.
Month-end asset mixes may total greater than / less than 100% due to differences in the timing of cashflows and investments, and/or to reflect cash held for the purposes of collateral allocations associated with certain types of derivatives. Country and sector allocations show specific exposures to countries / sectors representing at least 1% of total fund asset. As such, the values displayed may not total 100%.
The information provided in this listing and top ten holdings or top five issuers may differ from a fund’s holdings in its annual report and as follows, where applicable:
For the annual report, a fund’s investments include trades executed through the end of the last business day of the period. This listing and the ten holdings or five issuers include trades executed through the end of the previous business day.
The list includes any investment in derivative instruments, and excludes the value of any cash collateral held for securities on loan and a fund’s net other assets. There, the holdings as a percent of fund net assets may not total to 100%.
The top ten holdings or top five issuers for fixed-income and money market funds are presented to illustrate examples of the securities that the fund has bought and the diversity of the areas in which the fund may invest, may not be the representative of the fund’s current or future investments, and may change at any time. The top ten holdings and top five issuers do not include cash, cash equivalents, money market instruments, options, interest rate swaps, fixed-income total return swaps and/or futures contracts. Depositary receipts, credit default swaps and equity total return swaps are normally combined with the underlying security.
The listing of portfolio holdings provides information on a fund’s investments as at the date indicated. The information provided in this listing may differ from a fund’s holdings in its annual report.
Please note that investment performance and NAVPU are reported in U.S. dollars. Fund aggregate assets are reported in Canadian dollars.
