Build an income-seeking strategy - Fidelity Investments

BUILD AN INCOME-SEEKING STRATEGY

Sean Murphy, CFA iShares Product Consultant

February 25, 2021

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Together we'll cover...

Today's income challenge

Why Use ETFs

The income ETF toolkit

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TODAY'S INCOME CHALLENGE

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Cash doesn't work as hard as it needs to

Average yield for cash savings options

2.15%

0.05%

Savings Account

0.15%

12 Month Bank CD

0.32%

5Y Bank CD

Sources: FDIC as of 1/25/20. "Savings Account" , "12 Month Bank CD", "5 Year Bank CD" figures are national averages per category. The "5 year inflation expectation" is from St. Louis Federal Reserve Bank as of 1/25/20.

5yr Inflation Expectation

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Even low inflation can hurt in the long run...

Rate of Inflation Cumulative Growth ($)

Inflation by Year

5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Bureau of Labor Statistics, Morningstar 12/31/2020.

120.0 118.0 116.0 114.0 112.0 110.0 108.0 106.0 104.0 102.0 100.0

12/31/2010

Consumer Price Index

12/31/2015

12/31/2020

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