Fidelity Freedom Index Income Fund - Investor Class · NASDAQ:FIKFX
Fidelity Freedom Index Income Fund - Investor Class — Fidelity Investments — Investor Presentation (May 2018)
12 slides from Fidelity Freedom Index Income Fund - Investor Class's investor presentation, May 2018
Slide 1: Finding Income with ETFs
MAY 2018 Finding Income with ETFs Not FDIC Insured May Lose Value No Bank Guarantee FOR INVESTOR USE ONLY.
Slide 2: Agenda
Agenda What is a Dividend? Why Dividends Matter Why Dividends Now? A Factor—Based Approach to Dividend Income 2 FOR INVESTOR USE ONLY.
Slide 3: What is a Dividend?
What is a Dividend? 3 FOR INVESTOR USE ONLY.
Slide 4: What are Dividends?
What are Dividends? A payment made by a company to shareholders When a company sees a profit, the earnings can be used in two ways Reinvested back Paid to shareholders into the company as a dividend 4 FOR INVESTOR USE ONLY.
Slide 5: Why Dividends Matter
Why Dividends Matter 5 FOR INVESTOR USE ONLY.
Slide 6: Dividends can be a Powerful Investing Tool
Dividends can be a Powerful Investing Tool Since 1930, dividends have represented 40% of the average equity investor’s total return DIVIDEND CONTRIBUTION TO TOTAL RETURN, 1930–2017 40% Price appreciation Dividend return 60% Source: Morningstar, 12/31/17. 6 FOR INVESTOR USE ONLY.
Slide 7: Income Challenge of an Aging Population
Income Challenge of an Aging Population More investors are transitioning into retirement, so investments that generate income are becoming more important in meeting their financial goals. THE INCOME CHALLENGE OF AN AGING POPULATION 7 FOR INVESTOR USE ONLY.
Slide 8: More Companies are Growing Dividends
More Companies are Growing Dividends Over the last five years more than 80% of dividend-paying companies have increased their dividends S&P 500 COMPANIES GROWING DIVIDENDS 100% 90% 89% 88% 80% 83% 82% 81% 82% 79% 70% 65% 63% 60% 50% 40% 42% 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 Source: S
Slide 9: Dividends ETFs & Rising Rates
Dividends ETFs & Rising Rates 9 FOR INVESTOR USE ONLY.
Slide 10: Unintended Risks when Rates Rise
Unintended Risks when Rates Rise Dividend-focused ETFs primarily look for high yield or dividend growth or a combination of the two. This may lead to a sector bias. DIVIDEND ETFS RELATIVE SECTOR WEIGHTS RELATIVE TO RUSSELL 1000 FDRR Based on the average sector weight of dividend-focused ETFs. Source
Slide 11: Fidelity Dividend for Rising Rates Overview
Fidelity Dividend for Rising Rates Overview Targeting higher yielding companies with low correlation to interest rates can provide protection in a rising rate environment FDRR Fidelity Dividend ETF for Rising Rates Factor Rationale Weight Dividend Yield targets companies with higher dividend yields
Slide 12: Before investing in any mutual fund or exchange-traded fund, consider its investment objectives
S&P 500 is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Russell 2000 Index is a market capitalization–weighted index designed to measure the performance of the small-cap segment
Fidelity Investments — Investor Presentation (May 2018) on 6ix