Is FHCO a good ETF?
FHCO is the Fidelity Australian High Conviction Active ETF from Fidelity. We classify it under AU and Active. With about $2 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, FHCO has delivered -4.07% a year over 1 year (ranked 275th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.85% is high, which is common for active, geared or thematic strategies and only worth paying if the approach justifies it. For comparison, similar ETFs average around 0.49%. If cost is your priority, MQAE (0.03%), IOZ (0.05%), and VAS (0.07%) cover similar ground for less. It pays a high 15.62% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 70% franking softens the blow for Australian residents.
Portfolio turnover is modest at about 25% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- High 15.62% income yield — good for investors who want regular cash flow.
Things to watch
- A 0.85% management fee is high and compounds against you over time.
- Pricier than similar ETFs, which average around 0.49%.
- Cheaper alternatives exist: MQAE, IOZ, and VAS.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
Good to know
- Distributions are 70% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What FHCO's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
Actively managed: a portfolio manager hand-picks holdings trying to beat the index, rather than simply tracking it. You pay more in fees for the chance of outperformance.
- Market regime
- Can add value in volatile, falling or inefficient markets where stock-picking and downside protection matter. In long, broad bull markets most active funds struggle to keep up with the cheap index after fees.
- In a portfolio
- Only worth holding if you have genuine conviction in the strategy — decades of evidence show the majority of active funds underperform their benchmark over 10+ years once fees are counted.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.