Fidelity Hedged Equity ETF

FHEQ

Market cap $821M

The evolving investment landscape in 2026 is being defined by a search for new defensive tools and income. That said, more investors and financial advisors are turning to options-based strategies to address these factors.

Questionable valuations in large-cap tech, namely those spending heavily on artificial intelligence (AI), is bringing volatility back to the markets. The CBOE Volatility Index (VIX) has risen close to 50% from the middle of August to the middle of November.

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.