Fidelity’s FEQT has quickly become one of Canada’s fastest-growing all-equity ETFs—but it’s very different from traditional asset allocation ETFs like XEQT, VEQT, and ZEQT.

In this video, I break down exactly how FEQT is constructed, including:

• How Fidelity selects its stocks
• Why it tilts toward value, momentum, quality and low volatility
• How sector weights are adjusted
• Why large companies are added back into the portfolio
• The role of Bitcoin and active small-cap management
• Whether the higher MER is justified
• Diversification and tax considerations
• What the historical backtests really tell us
• A factor regression analysis showing what has actually driven returns

Rather than asking whether FEQT has outperformed in the past, we’ll look under the hood to understand why it has behaved the way it has—and whether investors should expect that to continue.

If you enjoy these deep dives, let me know what ETF you’d like me to analyze next. I’m already working on a similar breakdown of CAGE.

Thanks for watching!

Timestamps
0:00 Introduction
0:43 What is FEQT?
1:01 FEQT’s performance vs XEQT, VEQT, and ZEQT
1:34 FEQT’s underlying holdings
2:09 FEQT’s fees vs XEQT, VEQT, and ZEQT
2:40 Regional weights of FEQT vs XEQT
3:11 Bitcoin performance attribution
3:38 Active global small-cap allocation
4:10 How Fidelity builds its factor ETFs
4:41 Composite factor scores explained
5:50 Sector stock selection
7:31 Removing the unintended size tilt
8:37 Sector tilts
9:36 Diversification
10:14 Tax efficiency
10:50 Backtested performance
11:42 Regression analysis
13:31 Final thoughts