Fidelity Hedged Equity ETF

FHEQ

Market cap $521M

Heading into the fourth and final quarter of 2025 continues to bring a high level of uncertainty. This isn't relegated to the equities market, but also the bond markets.

The ETF wrapper has provided issuers a powerful tool for a growing diversity of ETF strategies, and few fund types have benefited as significantly as options ETFs. VettaFi's Alternatives Symposium took on that topic and the growing ETF category Thursday, with leaders from firms like Fidelity Investments taking part.

I hope you enjoyed a great July, whether you were on vacation or not. I've been catching up on the fantastic content our team at ETF Trends and ETF Database produced in July 2025.

Investing in options-based ETFs can be a powerful way to pursue capital appreciation while aiming for reduced volatility and protection against market downturns.  However, the unique nature of options may make active management particularly beneficial due to options having a finite lifespan and sensitivity to market movements.

In an investment landscape often characterized by unpredictable market swings, investors continually seek strategies that offer growth potential and help mitigate volatility. Fidelity Investments' hedged equity ETF emerges as a compelling solution.

Fidelity Investments has expanded its offerings of alternative investments with the addition of a managed futures ETF. Fidelity launched the Fidelity Managed Futures ETF (FFUT) on The Nasdaq Stock Market LLC on June 5.

On this week's episode of ETF Prime, VettaFi's Head of Research Todd Rosenbluth discusses the rise of active ETFs and anticipated ETF share class structure. Later, Fidelity's Eric Granat and Christine Thorpe spotlight the Fidelity Hedged Equity ETF (FHEQ) and the Fidelity Total Bond ETF (FBND).

Fidelity Investments has expanded its offerings of alternative investments with the addition of a managed futures ETF. Fidelity launched the Fidelity Managed Futures ETF (FFUT) on Nasdaq/NMS Global Market on June 5.

Fidelity Hedged Equity ETF is one of the better structured, yet simpler ETFs that try to take the risk out of taking a risk. The fund combines a modified S&P 500 stock mix with "laddered" put options to offer upside with limited downside. This is along the lines of how I think about investing in general: take risk but define the worst-case outcome when possible. FHEQ does a nice job of that.

The ETF landscape grows ever more saturated, with more than 1,000 new product launches in the first seven months of the year. That's a record amount of new issuance.