Quantitative tools and technology can help investment managers design more efficient, effective, and scalable strategies.
Fidelity Investments has extensive quantitative investing capabilities. The firm has a team of nearly 200 quantitative professionals who gather, manage, and interpret the nonstop data flow. The quant team can turn raw data into investment insights quickly and efficiently due to its cutting-edge technology, resources, and ability to scale.
“Investors that are turning to a quantitative active approach should feel comfortable that there is a strong team in place supporting the security selection process,” Todd Rosenbluth, Head of Research at VettaFi, said.
The firm’s quantitative investment process is multifaceted. The first step is to collect, clean, and organize data. This step is increasingly important as the amount of data available to asset managers is at an all-time high.
See more: The Potential Benefits of Fidelity’s Enhanced ETF Core Equity Suite
Next, Fidelity’s quant investors use sophisticated data analysis and statistical techniques to create information that can inform decision making. This may help identify alpha opportunities or aid in achieving portfolio specific outcomes.
Furthermore, data is analyzed in the context of current market and economic trends, geopolitical conditions, security characteristics, and behavioral factors. Other considerations may also be included.
This data is used to make investment decisions and build portfolios based on return potential, personalized investment objectives, and tax management. It is also used to continually manage risk.
Finally, a quantitative investment process maximizes decision-making speed and ease of customization while minimizing transaction costs.
Investors Can Access Quantitative Strategies With Fidelity
Investors interested in ETFs that use a systematic, quantitatively driven investment process may want to consider Fidelity’s range of funds, a subset of which prominently feature the firm’s quant team capabilities.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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