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Maximizing your strategy with Fidelity.com

MICHAEL POLLOCK:

Good day, everybody. My name is Michael Pollock; I am the

regional brokerage consultant for Fidelity investments out in

the California bay area, based in Palo Alto, and support all of

northern California. A big part of my role here at Fidelity as

a regional brokerage consultant is to help support our self-

directed clients. Myself and my team, we help support clients

with strategy on individual stocks, options, exchange-traded

funds, individual bonds, as well as all the tools and the

platforms that Fidelity provides our clients to go in and

interact with those different products in the marketplace. So

today, we’re actually going to be covering some of those

products. I’ve been in the industry almost 20 years now. I

came to Fidelity back in 2003. I’m going to share the agenda

here with everybody. We’re going to start on Fidelity.com, on

one of our demo accounts, where we will look at some of our

stock research tools, as well as our ETF research tools and then

we’ll do a quick introduction to Active Trader Pro, which is our

trading platform. And this will just be a quick introduction.

All right, so let me start the screenshare here on Fidelity.com.

We’re just logged into a demo account here on Fidelity.com, but

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it’s on the start page, which should look familiar to any

Fidelity clients out there. Most of what we’re going to cover

today will be under the news and research tab right on the very

top of the screen.

So, Fidelity.com, this is just from the homepage, or the initial

start-up page, right? Account summary, which we (inaudible) to

“news and research.” We can go down here to “markets and

sectors.” And so what the “markets and sectors” page will do is

it’ll give you an idea of what’s going on in the market today.

So we can see here a global view. So we can see what’s going on

here in the US and North America. We can see how Europe did, as

well as Asia. And then when those markets reopen, we’ll see

those update again. And then on the corner here on the right,

this is all about the US market and all the different sectors.

So this will show you a breakdown of just today; it’s a very

short data point; but just today so far, what are the sectors

doing? What does sector rotation look like? So we can see

today, you know, healthcare is down and add some other sectors

like Industrial, up. You know, the brighter red it is, the more

it’s down; the brighter green it is, the more it’s up. If it’s

just black it means it’s pretty flat. And then on top of here

you can click on research sectors and industries. And when we

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do that, we’ll get into more research screens. The first one

here, just a real basic screen here that shows the sectors

again, some performance. You can chart out performance from

here as well. You can click on the performance tab, which will

actually blow this up to as far as ten years’ worth of

performance on all the major 11 sectors in the US market.

“Industry” will give you all the subsectors. So these’ll be all

the subsectors of the 11 sectors. You can get, you know, a ton

of data on here.

Next is going to be “weighting recommendations.” And this is

another great spot of the site. For weighting recommendations,

again, we’re looking at the 11 US sectors of the market, and we

have three analyst firms that we use that will give us their

opinions on those different sectors currently. You may think

that -- are they bullish on this sector? If so, they’ll say

“overweight.” Are they negative on this sector? If so, they’ll

say “underweight.” And if they’re neutral on the sector,

they’ll say “market weight.” So on the left-hand side here we

can see the 11 sectors of the market, and the current weighting

in the US market. So the US market, or most indexes, are going

to be market-weighted. So as the companies are getting larger

and larger, so technology is the largest here. So it has Apple,

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and Google, and Facebook are growing. They become a bigger

portion of the overall market. So technology right now is the

largest. So if they say “market weight,” that means for your US

equities, about 21 percent is right. If they say “overweight,”

that means we’re actually pretty bullish on the sector, so you

can have a little extra exposure to that sector because we think

it will do well. It will outperform. You have three PDFs here.

Each of these will outline the investment thesis that each of

these firms use when they come up with these recommendations.

And then the other neat thing here as well is you can click on

their actual recommendation and that will bring up a report. So

here’s the Argus PDF report on why they have an overweight on

technology. And so you can print those out; you can make them

larger, easier to read right there on the screen as well. And

then the other neat thing that you can do from here is you can

actually click on any of these sectors to get into more research

on the sector. We’ll look at that here in a second. Before we

do that, let’s jump to the next tab here, which is the business

cycle tab.

At Fidelity, we’re constantly watching the business cycle in the

US and on the international markets to get an idea of where the

different markets are in their economy. We’ve got a link here

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to the February report. We update these monthly. And you can

go through this report and the nice thing here is we’ll show you

where the US is in the business cycle as well as the other major

economies. And you can go through here and you can read what’s

going on in the US, what part of the cycle we’re in, what we

think that means. So now we think we’re in late cycle, although

we don’t see recession risks being high right now either. So

then you have good information that’s very timely here. But

like I said, this will update next week with the March report,

so take a look for that. And then down below, again, we have

the 11 sectors. And what this is showing us here is you have

historically what sectors have performed best in the different

market cycles, right, so we’re in late cycle now. What

historically has done well in the late cycle? So that’s going

to be areas like energy, healthcare, and materials. And then if

we did roll into recession, what could most likely hold up

versus what will most likely not hold up. If we want to then

research any of these sectors just like any of the other pages,

you know, so healthcare looks good for late session. We can

click on healthcare. And you can do this from any of these

screens, wherever you see the name of the sector. It’s always a

hyperlink. So if we click on healthcare, now we’re getting into

a screen that’s going to give us research on healthcare. So

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right off the bat here we’ve got a chart comparing healthcare

for one year versus the S&P 500. You can change your benchmark

indexes. You can change the timeframe here. We can go down and

we can look at fundamentals for the entire healthcare sector.

And then we’ll have larger news stories from the healthcare

sector, and then research reports that we have from those third-

party providers on the healthcare sector. And then on the top

right here we have “Fidelity Research.” That mentions

healthcare as well. So these could be market updates that will

also include information on healthcare. Once you’re done

looking at healthcare, you can also break it down by industries,

right? So industries are going to be those subsectors. So what

is healthcare actually comprised of? So healthcare is made up

of all these different subsectors: biotech, healthcare

equipment, providers, technology, life sciences,

pharmaceuticals, et cetera. So now we can go; we can look at

how the different areas have done over different time frames.

And then, let’s say we’re interested in biotech, right? We can

just click in one of the subsectors, and now we’re going to

start the research over again but from the subsector level. So

now we’re analyzing biotech versus S&P. Fundamentals for the

biotech sector, bigger news stories for biotech, and then

research supports geared towards biotech. And then the last

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half that you’ll have here is defined investments tab. And what

this is going to show you here is, you know, let’s say that

you’ve gone through your research and you’ve determined “OK, you

know what? Yep, this is the subsector I want, or the sector.”

You can also do this from the sector level. Then we can find

ways to look for stocks, exchange-rated funds, or mutual funds

to invest in. When you pull up stocks, it’s just simply running

a quick screen of what biotechs are performing the best today.

When you go to “exchange-traded funds,” this is going to sort

out biotech exchange-traded funds, or exchange-traded funds with

exposure to biotech, based upon size. So the largest ones on

top based on how much assets they have under management. And if

you see the logos here, that means it’s going to be a

commission-free exchange traded fund, so you can buy these

exchange-traded funds with no commission. And if it has the

star here, that means it’s actually a Fidelity created exchange-

traded fund. And then you can also go here and do the same

thing with mutual funds. And so here will be mutual funds that

focus in on biotechnology. All right, again, that was all under

“news and research” and then “markets and sectors,” and one of

my favorite spots to go when I’m doing research on Fidelity.com.

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All right, next let’s look at some of these stock screening

tools and stock research tools that we have on the website. So

to access these, I’m going to go here, “news and research” and

then up to “stocks.” And when you select that, that’s going to

bring us into the stock research center, which is a really good

area to go to get information on individual stocks. And you’ll

see here, right of the bat, we’ll break it down again into the

11 sectors of the US market. And what we’re looking at here is

-- we use a score here to rate stocks. We use 10 different

outside analysts that will all give us opinions on different

stocks from buy, to hold, to sell. And then we use a company

actually based in San Francisco called StarMine, and a lot of

people call them the analyst of the analysts. And what they’re

going to do is they’re going to actually look at the research

from all of these firms, and then give it a weighted score based

on the analysts that have had the most success calling that

sector for the past two years. So we’ll dig into that in a

little bit more deeper in a little bit, but you’ll see here we

have a quick screen where we are looking at each sector and then

the top-rated company for the sector. And then the number of

bullets, stocks rated in each sector. So some sectors, like

utilities, for example, right now there are no bullish-rated

stocks, while other sectors, like technology, have 26. So if

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you want to see these stocks, we can just click right here on

“26 stocks,” and that will bring us into the screening tool and

run a quick screen for us looking at technology sector and

narrowing it down by the most bullishly rated stocks and

technology currently. And this is constantly updated. If you

check this tomorrow, and it’s possible, if there was a -- if

someone got downgraded, for example, that they won't be on this

list anymore. So it’s always updated in real time. And you’ll

see here, we’re looking at 26 stocks that are going to be very

bullish rated in technology. And this screen tool is really

neat. I would say this is probably one of the most

underutilized tools that we have in Fidelity.com when it comes

to stock research. It does take a little while to get used to

this tool. But let’s say, for example, we wanted to look at how

these different stocks have been performing. All right, we can

switch over to the performance tab, and here we can look at

performance on them. We can re-sort any of these columns to re-

sort this list and dice it up any way that we want. From here,

you can select several stocks and then compare them. So you can

click right here to take action and you can compare different

stocks together. Or, what I would prefer to do, is just look at

them individually, right? So if I want to look at Accenture, I

can just click on the ticker. It’s going to bring up the

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research for that particular stock. This is the research page

for individual stocks. And on this page here, you’ll see on the

very top level, we’ve got all the information for the stock. We

can see what it’s currently trading at, the day range, the 52-

week range, right? So we see it’s actually right on top if we

do two-week range right now you can confirm that. Here is a

one-year chart. Right down below we can look at things here,

like today’s volume, average volume, PE ratio, peg ratio. You

know, if it’s a dividend-paying stock, what the dividend yield

is, right? So this one pays 1.65 percent dividend yield. The

ex-dividend date was yesterday on the 10th. And we can see here

it’s rated very bullish, 9.6, and the stock is up 16.4 percent

over the last one year. We’ve got charts here that we can play

with. We can look at -- you know, defaults here are two-year

chart. We can look at ten years on it. You can go in here and

change the time frame on these different charts to [assorted

introdite?], or as long as max. Max will give you everything

that we have on that particular issue. A news window. So

here’s that equity summary scores. I hit on this a little bit,

but let’s look at this in more detail. So the nice thing with

this research page is you have all these boxes, but you can

expand them if you want to get more information. So we really

want to dig in “OK, how does this have such a very bullish

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score?” We can click on “more” in the top, right corner, and we

can see how this score came about. Like I mentioned, so we have

ten analysts here covering the stock. So some are outperformed,

some are buy, some are neutral. It looks like nothing negative

here, just a few neutrals. And then this is the StarMine score,

so in order to get this score, what StarMine is doing is it’s

taking all this information, putting it in a black box. It’s

looking at each of these different firms and how well they did

covering technology for the past two years. The firms that have

done the best job covering technology, like Zacks, their current

recommendation is going to have a higher weighting on this score

right here. So they’ve got them at an outperform. The next two

have them at a bias, so that’s -- the top performers are all

very bullish, which is pushing the score higher. The score here

is designed to look like a bell curve. You know, the neutral

range is all the way from three to seven. So most companies are

going to fall somewhere within neutral, with fewer companies

falling in the bearish and very bearish range, and fewer

companies falling in the very bullish to bullish range. So

these 10 analysts that we use here, these are third-party,

independent analysts. These are not investment banks. These

are not firms that are trying to underwrite a new bond issue

with these different companies that they’re rating. They are

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not trading house accounts where there could be some conflict in

what they’re actually trading and what they’re going at and

recommending to the public. These firms make their money by

creating research and selling it. So Fidelity, we’re one of

their customers; we buy their research; and then we share this

with anyone that has a Fidelity account. Down below here, you

could see other analysts, so not just the analyst that Fidelity

uses, but here you can see, you know, what the investment banks

have it rated at as well. You have a little histogram here so

you can see if they’ve been changing their opinion. Like

Columbine, for example. They’ve gone from bullish to neutral,

back and forth several times while others have just been on a

buy. Over on the right-hand side here, you’ll have links to the

firm’s most recent research reports. My favorite report on

these is the Argus Analyst Report. You can click right here on

the date and that will bring it up. This is going to be the

most complete report generally that we have on every individual

equity. Most of the larger companies will have the Argus

report. Some of them are just one-page, computer-driven models.

The Argus report is actually written by real analysts and you’ve

got a lot of really good information in here, and they’re very

timely. They’re usually updated after an earnings announcement

where a lot of new information has been released, or they’ll be

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updated maybe after a big product announcement or something

potentially that’s market-moving. So this one was just updated

at the end of March, you can see right after earnings on the

28th. And the nice thing, too, with Argus is that they’ll also

give you price targets, right? So the stock right now is around

175, and they’ve got a target of 200 on it. So you can go

through; they’ll give you their opinion as well their targets,

and then an actual investment thesis. You can go through here

and see, you know, why do they like this company? Why do they

currently have it at a buy? And you can go through here and

read all about this recent developments, all the fundamental

information, the different notes from the analyst, and then

comparing it to its competitors here as well. So these are

really great reports that you can go through and look at. And

this is just a company that we randomly pulled up just because

it happened to be at the top of the screening page, but you can

see lots of good examples like this as you’re going through your

research.

All right, so that is a little bit there on the stock screener.

So now we access the stock screener. Let’s do that again real

quick. Right, we went to “news and research,” “stocks.” That

brought us into the stock research center. And then we just

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clicked right here, from technology to see the bullish,

(inaudible) technology companies. That’s one way to get into

the screener. There’s many other ways to do it. We can go over

here on the left and you’ll see screen and filter, and we can

just click right here on the stock screeners and that will bring

us right into the stock screening page. So from here, you can

just hit the blue button, “start a screen,” or if you’re looking

for something very specific, you can narrow it down sometimes on

the right-hand side. This will be common areas that people are

screening for. But let’s just hit “start a screen” and I’ll

show you some other ways that you can get some prebuilt screens,

and of course you can also go in and build your own screens. So

what I usually recommend clients as they’re learning this -- and

the reason I think this page is a little underutilized is

there’s a bit of a learning curve on this page. You know, you

really need to sit down with this page, give yourself at least,

you know, 10, 15 minutes to sit down and really play with it and

get an idea of how it works, but once you do, it becomes really

powerful. But you can go right here, for example, under “add

criteria” and you can hit “view all.” This will show you

everything that you can screen for in the marketplace. So

you’re starting with a market of, you know, well over 5,000

stocks, and then you can narrow them down very specifically by

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looking at things like “basic company facts,” “dividend

information,” “earnings information,” you know, “fundamentals

for management and growth,” “valuations,” “PE ratios,”

“performance numbers,” “volatility numbers,” “beta,” “trading

characteristics.” So there’s a lot you can narrow it down from.

Well, like I said, initially it can be intimidating, so we have

a couple areas here to help you get going. So for example, we

have “themes.” The themes are pretty neat, so if you want to go

in and maybe look for companies that could benefit from -- that

are working on artificial intelligence. That’s a built-in theme

right now, 3D printing, you know, drone companies, robotics,

software services, mobile payments, FinTechs, so lots of these

different areas that can really be changing the way that we do

business in the future. So the themes are really neat to play

with and then there’s also strategies that are prebuilt. So

these strategies -- many, many years ago we went to the

different analyst firms that we’re using, and we said “hey, we

built this amazing screening tool. What would you look for if

you were using the screening tool?” And you can go in here, for

example, and you can look at, (inaudible) growth, for example.

And so these are going to be different prebuilt screens that the

analysts have built for us. This one here is powered by Zacks.

And it’s looking for dividend growers. So we can say “oh, let’s

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take a look at this one here.” And you can just select it and

it’s going to put it right into your screener for you, and on

the very top here, it’ll give you an idea. You know, what is

this strategy? Why did they create it? And you can go through

here, read more about the strategy as well as some things to

watch out for, you know, what might pop up on here that we need

to be a little bit leery of, and then a summary of the strategy.

And then here are the results. So this strategy here has

produced 10 results. And you can see these are companies with

dividend yields. The dividends have been growing positively,

even for the last five-year average. And we’re looking here at

earnings per share. So earnings growth has also been rising.

We can see the PE ratios right here, right? And the neat thing

too is you can see how they’ve narrowed it down. So they are

looking for dividend growers that are not necessarily too

expensive. So they’re looking at PE ratios that max out at 20.

So, maybe -- you know what, I’m OK going a little higher than

that. Maybe I’m OK going up to, say, 25 on a PE ratio. You can

go in here and you can adjust that. You can manually change

that to 25. We can see here the market median for PE ratios in

the US right now is 16.4. So we can switch it here to 25. It’s

going to rerun. And there. Didn’t find any more. We’re still

at 10. Let’s go a little higher, see if we can get this to

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change. Let’s go up to 30. All right, so going up to 30, we

picked up two more dividend players. But so the neat thing here

is you can start with a prebuilt strategy from an expert and

then you can go in and you can tweak it as well to something

you’re looking for. OK? So they’re looking for dividend yield

between five percent and higher, and maybe you’re look “you know

what, I’m OK going down to 4 percent dividend yield.” You can

again readjust it. You know, now we’ve picked up a few more.

Now we’re up to 17 companies. So you can really go in here and

make these your own screens. And then, once you’ve done that,

you can even save it. So you can go here, save it to your own

screen, and then you can name it. You know, so you can name

this, you know, “Michael’s Dividend Growers” now that I’ve

tweaked it a little bit. And then save it. And then whenever

you come back to this screen, you can just go up to the top

right corner under “my screens” and this will pull up everything

that you’ve saved. And you just click on them and then it will

run it for you right at that time. So that is the stock

screening tool. Really, really neat tool. Highly recommend if

you are into individual equities that you go in and give it a

shot.

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Now, a lot of clients these days are saying “hey, you know what?

I don’t have time to go into individual equities. I prefer to

just use exchange-traded funds. Let me just index and build out

a portfolio with exchange-traded funds.” Not quite as much work

is going through and trying to build out an individual stock

portfolio. So no problem at all. We can do something very

similar with exchange-traded funds. So we can go here under

“news and research,” and then we can go here to “exchange-traded

funds.” And it’s opening up our ETF research center. And this

is, again, really a neat page here, especially if you are into

exchange-traded funds. For those of you not familiar, exchange-

traded funds, they are going to be -- if you’re familiar with

mutual funds -- so mutual funds come in really two main flavors:

actively managed or index. So the bulk of exchange-traded funds

are index funds. You know, well over 95 percent of exchange-

traded funds are index funds. So think of an index mutual fund,

where you’ve got an exchange rate of -- where you’ve got a fund

that’s just designed to track a benchmark. They don’t have a

management team trying to go in and outperform the benchmark.

They’re just trying to track it. But, unlike an index mutual

fund, exchange-traded funds trade on the exchange, right? So

they trade on the exchange right next to stocks, so the same way

stocks do. So the benefit there is you can trade them intraday.

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You don’t have to wait until the end of the day pricing to get

your buy or sell executed. You can buy at the market open and

you can sell 30 minutes later. All the tools that you have for

equities you can use on exchange-traded funds. So limit orders,

good until cancel orders, stop orders are all available. So a

lot more flexibility with exchange-traded funds for the index

investors than through index mutual funds. And the other major

advantage too is you don’t have the holding period. Most mutual

funds will require that you hold the stock for a certain amount

of time, or else there could be a penalty. With exchange traded

fund there’s no holding period. So they’ve become extremely

popular with our self-directed clients. But so from this page

here, you can also go in and look. The market now, there’s

thousands of exchange-traded funds available in the US. We have

well over 350 currently that you can trade commission-free on

our platform, which is a huge benefit. You don’t pay your buy

commissions when you trade these exchange-traded funds, so you

can search for those quite easily. The bulk of these, well over

300 come from iShares. They are the market leader in exchange-

traded funds, so we have partnered with them. They own about 40

percent of the exchange traded fund market. The reason why

they’re so large is that they really own the institutional side

of the business, so that when professional money managers are

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using exchange-traded funds, they are pretty much exclusively

going through iShares. So these are really some of the best of

(inaudible) exchange-traded funds. But we can just click right

here under an ETF screener for right on iShares, for example,

and this will let us look through all the iShare’s commission-

free ETFs to find some ETF ideas. The first one here, this is

the iShare’s Core. So think of these as building blocks to

build a portfolio. You can look for ETFs that focus on income.

So maybe you’re in retirement and you need to pull income out of

the portfolio, but you don’t want drawn-out principle. You can

find income-producing investments international, right? A lot

of our clients based here in the US usually are quite

underweight international. So this could be a way to get some

international exposure. Factor ETFs, also known as smart beta,

so they’re still index funds but they are working on a smart

index. So they’ll have some sort of rules, or algorithm that

they’ll rebalance too periodically, whether it’s an annual, or

semi-annual, or quarterly. Sectors, so if you want to focus in

on certain sector, like we were looking at healthcare and

technology before. You can find ETFs that focus on those

sectors. So instead of going and trying to find a handful of

the perfect technology companies, we can just look for an ETF

that will invest in technology companies for us. And then

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sustainable ETFs. These have become quite popular in my neck of

the woods, here in the bay area. So these are going to be

looking for companies that are a little bit lean, a little bit

more on the greener side within their sectors. A little bit

more balanced on their boards and ideally are a little bit

better to their employees than the average companies. Let’s

look here at the Core first. So we can just click right here on

the Core box. And what you’ll see here is this is going to

bring us into the screening tool, which looks very familiar now,

right? So really it’s the same back end as our stock screening

tool. But now we’re looking at exchange-traded funds. Let’s

just see our ETFs slash ETP. So “ETF” stands for “exchange-

traded fund.” We love acronyms in this industry. “ETP” just

stands for “exchange-traded product.” So sometimes you’ll have

a closed-end fund, for example, or a partnership that look and

trade just like an ETF, and so we’ll include those in here as

well. This here is going to be broken down by size. So the

largest of the Core ETFs will be on top, largest under --

measure-by-assets under management how much is invested in those

exchange-traded funds. You’ll see here things like the S&P 500.

We’ve got international; we’ve got emerging, bonds, mid-cap,

small-cap; we’ve got total market. So these are all different

ETFs that we can look at. And again, these are the cores. So

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clients will use these to build out the base of a portfolio,

right? So if we want to build a diversified balance portfolio,

right, we’re going to have an allegation to US equities, an

allocation to international equities, and then an allocation

into bonds. So we have all of those tools here to build out

that core portfolio. Let’s look at the US equities first. So

here’s an example. Here are the total US market, ITOT. So you

can click on this one here. This will bring you into the ETF

research page, right? Looks very similar to the stock research

page we looked at before, except now all this information is on

this exchange-traded fund. We can see here, this one, you can

buy commission-free. We’ve got the buy and sell right here on

the top of the research page. We can see here, your previous

close, the day range, 52-week range, today’s volume, average

volume on this ETF. Net assets, there’s almost 20 billion

invested in this one ETF. The yield, so this one is kicking at

1.86 percent yield. The expense ratio, you have a .03. Any

time you’re looking at indexing, right, indexing is usually a

lot less expensive than the active-managed funds just because

you don’t have that team that you’re going out and paying for,

so they are going to be easier to run. Performance numbers

here, then you’ve got the boxes down below just like we had on

individual stocks, but these are going to be different boxes,

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right? So what is it holding? You can go here under “see more”

under the profile of what is it holding. And on top here,

you’ll see the objective of the exchange-traded fund. You know,

what benchmark is it trying to cover. Right, so this one here

is primarily the US. We’ll see the sector breakdown, right? So

very similar to the S&P 500 breakdown of companies. Technology,

healthcare, financial’s the largest. Here will be your top ten

holdings, and this one here is very diversified because it’s

total market. So you’ll see there’s 3,233 companies in this one

ETF. So, I mean, talk about diversification within the US. One

trade with no commission gets you access to over 3,200

companies. This one’s so diversified the top ten is only 17.18

percent of this ETF. Smaller ETFs, the top ten could represent

50% of the entire ETF quite easily. Here are the subsectors.

You know, software, or bank’s IT. Market cap, so this one being

total market is primarily large-cap, but then you do get some

mid-cap, some small-cap, and some micro-cap. So a little bit

different look than say an S&P 500 ETF, where you only have 500

of the largest companies. So a little bit more diversified

there than just the S&P 500, which of course is an option as

well here, through IVV. So that is one example of how to go

through screen for exchange-traded funds and then go in and

research them. So we were just looking at the core there. You

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can hit “clear all” right here. And then you can go in and you

can look again, right? SO we can go here; we looked at “core,”

but maybe I’m interested in a couple different sectors. Right,

if you click on “sectors,” now it’s going to sort the list by

the different sector ETFs. Again, sort of by holdings. So here

we can see things like technology, real estate, global

infrastructure, financials, expanded technology, mortgage real

estate. So you can see here lots of different sectors, energy,

telecom. So lots to choose from, 46 here, just for all the

different breakdowns of different sectors, both US and

international. And then again, of course, on the ETF screener,

just like on the stock screener, you can just start from scratch

if you want. You can go here to “view all,” for example, and

these are all the different ways that you can sort through the

world of several thousand exchange-traded funds and narrow them

down into a manageable list of ETFs to go through and research.

So that’s the ETF screening tool.

All right, so that will conclude the Fidelity.com research piece

of the presentation. Now what I wanted to do is jump in to the

trading platform, which is called Active Trader Pro. Active

Trader Pro is software that you download. You can download it

from Fidelity.com. The easiest way to do that, Active Trader

25

Pro or ATP for short. If you just type in “ATP” in the search

field and then hit “enter,” that will search for Active Trader

Pro, or ATP. And then you’ll see right here, Active Trader Pro,

right on top. You can select that and this will bring you into

a page where you can download Active Trader Pro and also learn

about what you can do on Active Trader Pro. So Active Trader

Pro, it’s a trading software. You can download -- it works on

computers so you can download this on a PC or a Mac computer.

Laptop, desktop, doesn’t matter. Just hit the blue button here;

download it like you would any other program. Once that

download is complete, if it’s a PC, it’ll put a green Fidelity

logo on your desktop, which you can click, and that will prep

the program. If you download this onto a Mac, it will put that

same logo under Launchpad, and then from Launchpad you can just

pin it to your control panel or your toolbar down at the bottom.

And then when you open them, they’ll bring up a user ID and a

password, and it’s just going to be the same user ID and the

same password that you use when you use when you log into

Fidelity.com. Once you’ve logged in, it will walk you through

an introduction screen where it’ll have you set up your color

theme, sizing, default, trading account, et cetera. So this is

a demo account here that I’ve tweaked to how I like to use it.

I prefer the white background; I just find it a lot easier to

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use than the darker backgrounds. The main benefit here of

Active Trader Pro is going to be the amount of data that you can

see on the screen at one time, and then the customization of the

platform. So everything on here is customizable. So it’s not

necessarily that you’re getting different data than you get on

Fidelity.com; it’s just how it’s all presented. So, for

example, here we’ve got a watchlist running; we’ve got a news

window; we’ve got order status, some detailed quote windows, and

two charts. So here’s a one-year chart, and then here’s a

intraday chart, all running at the same time. And it’s also

streaming. So you’ll see here, these numbers are all streaming.

The charts moving with the market. So that is really the

biggest difference between Fidelity.com and Active Trader Pro,

the amount of data that you can have running on the screen at

one time. For example, in Fidelity.com, if you want your order

status, order status is going to take up the entire page. If

you go to your watchlist, the watchlist is going to take up the

whole page. But here we can have it all running right next to

each other. So that’s a huge benefit. And then the amount of

customization you can do. You can go here into “settings,” for

example. You can go here into “general.” You can go in here

and then you can go into “order status” for example, and you can

color code your orders. So you can have “open orders” as green,

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“filled orders” as red. You know, everything on here is

customizable. You can go here and you can even customize your

news. So if there’s certain news that comes through the

newswire, if there’s certain companies that you don’t like, you

can uncheck those feeds, and those feeds won't come through

anymore. So you can do quite a bit here with the news. So

that’s part of the main benefits of Active Trader Pro. Next

you’ll see here, so we’ve got our watchlist. You can also link

everything together so we’re looking at the Qs, the Nasdaq 100.

Let’s say we just want to look at a company. I’ll just use

Apple as an example. We can go here; I can double click on the

quote here for apple, and look, it’s going to put it right into

my charts for me. So I’ve got a one-year chart on apple, an

intraday chart on apple. Down here we’ve got the detailed quote

on apple where we can see things like next earnings dates, ex-

dividend dates, PE ratios, all right here. Then we’ve got the

news running down here below as well, all updating. You want a

place to trade? Super simple, just right click in here and

you’ve got access to the buy and sell buttons. You click on

that; that’ll bring up a trade, and you can place your trade

very quickly, very easily from here. So very, very efficient

from a time standpoint. You can preload trade preferences so

it’ll have the number of shares you like to trade, the order

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types that you like to select, just all these little things that

will help you in executing everything quicker. On the chart in

here, you can go in, you have access to all the different

indicators. So these are all different indicators that you can

add to your charts. You have to know there’s an absolute ton on

here. There’s a search field too, so if we wanted to go in and

add the Mac D for example, but I don’t want to go through that

huge list, I can just type it in the search field. It’ll find

it for me; I can select it; and it’s going to add it right there

into this (inaudible) automatically. So very, very quick, very

efficient. From here, you also have the help section. So help

topics is essentially an online user manual built right into the

software. So you can pull that up and you’re going to have a

legend here, where you can go through and figure out exactly

what area that you want to look at as far as what do you need

help with. Do you need help with the alerts, with the layouts,

with trading, managing the portfolios, options, idea generators?

You can find all that information right here from “help.”

There’s also things to know about Active Trader Pro, so you

know, hidden gems, for example. A good one, frequently asked

questions, links here into the Learning Center as well. You

know, videos here on how to get started with the platform, how

to trade on the platform, how to do option trading on the

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platform, trade builders, summaries, et cetera. So, a lot of

helpful features built right into the platform as well to make

it easy to jump in and start using the platform. One area that

we added about two years ago is the real-time analytics. So

this is neat here. This will search through your portfolio as

well as your watch list, so basically looking for different

stocks that you’re following or stocks that you own, and it’ll -

- just noticing some real time that you might have missed. So

for example, today Netflix experienced a volume spike over the

past 30 minutes. So you can go in there and pull up a chart on

Netflix and see what’s going on, or a quote on it, see why it’s

moving. Akamai just hit a new 26-week high. Here was a Mac D

crossover to the downside. So you can see all types of

information here. And if there are certain things you don’t

really care about, like “oh, I don’t care about a 26-week high

or low, just tell me about 52-week high and lows.” You can even

uncheck these different areas if there are certain events that

you don’t want to be notified about. So you have, again, a lot

of customization in here and a lot of newer tools. We’ll have a

feedback link. So you can click right here and then let us know

what you think about the tool, or a way that we could

potentially prove it, and that feedback goes right to our

developers, and they actually do take a look at that and we are

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constantly evolving the platform, improving it, and a lot of

those improvements will come directly from customer feedback.

So if we have a lot of customers asking for a certain feature,

we’ll go and incorporate that into the platform.

All right, so that concludes the Action Trader Pro portion.

Thank you again to everyone for joining today. It was a

pleasure spending the hour with you, going through the different

tools that we have at Fidelity, and I’m sure that more of you

have more questions, so please feel free to reach out. We are

here to help you out.

END OF AUDIO FILE