Fidelity Hedged Equity ETF (FHEQ)

Fidelity Hedged Equity ETF (FHEQ) is an actively managed exchange-traded fund sponsored by Fidelity Investments. It seeks capital appreciation while aiming to reduce the impact of equity market declines.

The fund holds a diversified portfolio of large U.S. companies similar in size to those in the S&P 500 and Russell 1000, selected with a quantitative process that evaluates fundamental factors. Alongside the stock portfolio, it uses an options overlay that includes buying put options for downside protection, typically financed in part by selling call options, which limits some upside participation.

The fund launched in 2024 and is designed as a hedged alternative to a conventional large-cap equity holding. Its holdings are spread across sectors in a way broadly similar to the large-cap market.