Fidelity US Quality Income UCITS ETF - Acc

Issuer: Fidelity International

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 03 Apr 2017

Ticker: FUQA

ISIN: IE00BYXVGY31

This actively managed fund offers a strategic approach to US equity investing by focusing on two key factors: quality and income. The primary objective is to generate both capital appreciation and a consistent income stream by investing in a portfolio of high-quality, dividend-paying companies based in the United States. It employs a systematic, research-driven process to identify businesses with strong financial health, stable profitability, and sustainable cash flows, which are often better positioned to weather economic cycles. The strategy deliberately avoids chasing the highest yields, instead prioritising the sustainability and reliability of dividend payments from financially robust companies.

The investment process involves screening the broad US equity market to create a universe of companies that meet stringent quality criteria, such as strong balance sheets and consistent earnings. From this curated list, the fund selects stocks that exhibit attractive and sustainable dividend characteristics. This dual-factor methodology aims to construct a portfolio that may offer a degree of downside protection during periods of market volatility while still participating in market growth. The focus on quality can lead to a more defensive positioning compared to traditional market-cap-weighted indices, making it a compelling option for investors seeking a stable core for their equity allocation.

This fund may be well-suited for investors with a long-term horizon who are looking to add a core US equity holding with an emphasis on income and lower volatility. The strategy's blend of quality and dividend factors provides a potential source of consistent returns and may appeal to those seeking to build wealth through both capital growth and the power of compounding dividends. As an accumulating share class, all income generated is automatically reinvested back into the fund, which can be particularly beneficial for investors focused on maximising long-term total returns.