As ETFs continue to evolve, new “enhanced” or actively structured ETFs are emerging as thoughtful alternatives to traditional passive strategies, especially in today’s volatile market. 

Fidelity leaders emphasized how these hybrid ETFs aim to maintain core market exposure while improving on passive models through modest, research-driven security selection. Amid rising concerns like U.S. tariffs and potential recession risks, investors were advised to stay cautious but open to market rebounds following short-term shocks.

Fidelity’s Craig Ebeling noted that passive index tracking can lead to unintended exposures, while enhanced ETFs allow for greater alignment with investor goals by avoiding certain stocks. The Fidelity Enhanced Large Cap Core ETF (FELC), for instance, leverages a quantitative system to actively select large-cap equities and has returned 9.78% since inception. 

Finsum: Investors remain optimistic about long-term opportunities, particularly with enhanced ETFs designed to improve benchmark outcomes.