Fidelity Global Investment Grade Bond ETF Series L Trust · NEO:FCIG

Fidelity Global Investment Grade Bond ETF Series L Trust — Fidelity Investments Canada ULC — Investor Presentation (2024)

13 slides from Fidelity Global Investment Grade Bond ETF Series L Trust's investor presentation, Jul 26, 2024

  1. Slide 1: The power of compounding

    Lesson 8 The power of compounding © 2024 FIDELITY INVESTMENTS CANADA ULC 1809162-v2024412 1

  2. Slide 2: What is compound interest?

    Lesson 8 What is compound interest? Compound interest is earned when the interest you earn in a savings or investment account earns interest of its own. With compound interest, you earn interest on both your initial balance – called the principal – and the interest that’s added to the balance over t

  3. Slide 3: Simple and compound interest formulas

    Lesson 8 Simple and compound interest formulas Compound interest occurs when interest Simple interest is calculated ONLY on the is added to the principal, so the interest principal amount. that has been added also itself earns interest. Simple interest formula: Compound interest formula: Future Valu

  4. Slide 4: Smarties activity

    Lesson 8 Smarties activity You will each start with 10 smarties, which represent your initial investment. Your all invest your money and earn 10% annually, but half of you are earning compound interest, and half are earning simple interest. #of smarties – simple interest #of smarties – compound inte

  5. Slide 5: Which is better – Earning simple or compound interest?

    Lesson 8 Which is better – Earning simple or compound interest? # of Smarties at the end of: year 1 year 2 year 3 year 4 year 5 Simple interest 10% 11 12 13 14 15 Compound interest 10% 11 12.1 13.31 14.64 16.11 year 6 year 7 year 8 year 9 year 10 Simple interest 10% 16 17 18 19 20 Compound interest

  6. Slide 6: Investigation

    Lesson 8 Investigation You have $1,000. You can choose between: 1. an account that pays 7% simple interest 2. an account that pays 6% interest, compounded annually Hypothesis: After how many years will the investment earning compound interest of 7%, compounded monthly, become greater than the invest

  7. Slide 7: Investigation

    Lesson 8 Investigation © 2024 FIDELITY INVESTMENTS CANADA ULC 1809162-v2024412 7

  8. Slide 8: 7% simple interest VS 6% interest, compounded annually

    Lesson 8 7% simple interest VS 6% interest, compounded annually Balance of $1,000 investment at the end of: year 1 year 2 year 3 year 4 year 5 Simple interest 7% Compound interest 6% year 6 year 7 year 10 year 20 year 30 Simple interest 7% Compound interest 6% © 2024 FIDELITY INVESTMENTS CANADA ULC

  9. Slide 9: Was your hypothesis correct? How close were you?

    Lesson 8 Was your hypothesis correct? How close were you? What surprised you about this investigation? Balance of $1,000 investment at the end of: year 1 year 2 year 3 year 4 year 5 $1,070.00 $1,140.00 $1,210.00 $1,280.00 $1,350.00 Simple interest 7% Compound interest $1,061.68 $1,127.16 $1,196.68 $

  10. Slide 10: Tips: Invest early

    Lesson 8 Tips: Invest early The power of starting early • Start investing early and consistently to take full advantage of the power of compounding Compounding gives you a huge head start if you start saving for retirement early. In this example, an investor contributes $6,000 a year to a retirement

  11. Slide 11: Invest often

    Lesson 8 Invest often • Regular contributions will make your money grow faster and help to decrease your risk. • The S&P 500 – a common benchmark for overall stock market performance – has averaged close to 10% annual returns over the last 100 years. • But the market doesn’t move in a straight, upwa

  12. Slide 12: Diversify

    Lesson 8 Diversify • The average return of the S&P 500 is based on the average returns of 500 of the largest public companies in the U.S. adjusted based on each company’s market capitalization. The S&P 500’s wide-ranging holdings help provide the kind of diversification that many investors aim for t

  13. Slide 13: The power of compounding

    Lesson 8 Returns on a The power of compounding Compounding growth supercharges your savings, and it is especially powerful if you have a long time to $6,000 investment stay invested. A single investment of $6,000 can grow approximately $90,000 after 40 years thanks to that earned simple potential po

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