For conservative investors seeking a diversified portfolio aimed at generating income and moderate growth, the Fidelity All-in-One Conservative ETF is a compelling option. This ETF is part of a series of four all-in-one ETF solutions offered by Fidelity Investments Canada, including the Fidelity All-in-One Equity ETF (FEQT), Fidelity All-in-One Growth ETF (FGRO), and Fidelity All-in-One Balanced ETF (FBAL). In this review, we’ll explore FCNS’s holdings, fees, returns, pros, cons, and compare it to FBAL.
The Fidelity All-in-One Conservative ETF is designed to provide income and moderate growth by investing in a mix of fixed income and equity securities. It carries a low to medium risk rating, offering investors lower volatility compared to FGRO or FEQT. Key facts about FCNS as of June 30, 2023, include:
FCNS is a diversified ETF composed of various Fidelity ETFs, including bonds, stocks, and cryptocurrency. Its target asset allocation aims for approximately 59% in fixed income securities, approximately 40% in global equity securities, and approximately 1% in cryptocurrencies. These assets are globally diversified and undergo periodic rebalancing to maintain the target allocation. As of June 30, 2023, FCNS’s underlying ETF holdings include:
As of July 31, 2023, FCNS has delivered a one-year return of 5.22%, while its performance since inception in January 2022 has been -1.10%. Cash distributions from this fund occur annually.
The Management Expense Ratio (MER) for FCNS was 0.38% as of March 31, 2023. This translates to an annual fee of $38 for every $10,000 invested in the fund. Self-directed investors may also incur trading commissions when purchasing the ETF through their brokerage, although some discount brokers offer commission-free ETF trading.
FCNS offers several advantages, including:
While FCNS offers many benefits, it has some limitations:
FCNS and FBAL are both part of Fidelity’s all-in-one ETF series, but they differ in their asset allocations. FCNS has a lower equity allocation (around 40%) compared to FBAL (about 59%), and both funds include a small allocation to cryptocurrencies (about 1% FCNS vs. 2% FBAL). FBAL has a higher allocation to fixed income.
For self-directed investors, replicating the level of diversification offered by all-in-one ETFs like FCNS can be challenging. These funds provide a convenient way to achieve diversification with a single investment. They are also cost-effective compared to traditional mutual funds or managing multiple individual assets.
FCNS, in particular, offers a do-it-yourself approach for investors looking for simplicity and convenience in their portfolios. However, it’s essential to consider your individual financial circumstances, investment objectives, and time horizon when choosing between different all-in-one ETF options like FCNS, FGRO, FEQT, or FBAL.
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