ETF Evaluator: Fidelity Yield Enhanced Equity ETF () Follow This ETF

Fidelity Yield Enhanced Equity ETF Overview

Fidelity Yield Enhanced Equity ETF (FYEE) is an actively managed Nontraditional Equity Derivative Income exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2024.

The investment seeks current income while maintaining prospects for capital appreciation. Normally investing at least 80% of assets in equity securities. Investing in equity securities of companies with market capitalizations generally similar to companies in the S&P 500® Index or Russell 1000 Index. Generally using computer-aided, quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks that may have the potential to provide a higher total return than that of the S&P 500® Index.

About Fidelity Yield Enhanced Equity ETF (FYEE)

There are 5 members of the management team with an average tenure of 1.88 years: Anna Lester (2024), George Liu (2024), Shashi Naik (2024), Eric Granat (2024) and Anthony Italiano (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) index with a weighting of 100% and CBOE S&P 500 2% OTM Buywrite PR USD index with a weighting of 100%. Fidelity Yield Enhanced Equity ETF has 188 securities in its portfolio. The top 10 holdings constitute 39.8% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Fidelity Yield Enhanced Equity ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Fidelity Yield Enhanced Equity ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity Yield Enhanced Equity ETF has 3.0% of the portfolio in cash.

Assets Under Management

The fund has $218 million in total assets, which is below the $727 million average for the Derivative Income category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FYEE Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Yield Enhanced Equity ETF expense ratio is below average compared to funds in the Derivative Income category. Fidelity Yield Enhanced Equity ETF has an expense ratio of 0.28%, which is 66% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Yield Enhanced Equity ETF has a portfolio turnover rate of 90%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the Derivative Income category.

Recently, in the month of July 2026, Fidelity Yield Enhanced Equity ETF returned 2.3%, which earned it a grade of A, as the Derivative Income category had an average return of -1.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Fidelity Yield Enhanced Equity ETF has a trailing yield of 6.13%, which is below the 19.96% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Yield Enhanced Equity ETF Grades

Year to date, the ETF has returned 9.3%, 6.7 percentage points better than the category, which translates into a grade of B. The fund has returned 21.0% over the past year (grade of B).

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