FDIG vs HECO

FDIGAFidelity Crypto Industry and Digital Payments ETF

HECODState Street Galaxy Hedged Digital Asset Ecosystem ETF

In short

FDIG Crypto exposure through the companies, not the coins: roughly 50 miners, exchanges and digital payments processors, weighted by how heavily they trade rather than how big they are, in a Fidelity-built index priced below the thematic norm.

HECO Crypto-adjacent stocks with an airbag bolted on. HECO holds the miners, exchanges and blockchain builders, adds crypto exposure via ETFs and futures, then runs an options overlay built to damp the volatility.

Stated mandate

FDIG The fund seeks to track the performance of the Fidelity Crypto Industry and Digital Payments Index before fees and expenses. It normally invests at least 80% of assets in equity securities or depositary receipts included in that index.

HECO The fund seeks long-term capital appreciation by investing in companies expected to benefit from crypto-asset and blockchain adoption, while also obtaining crypto exposure through ETFs and futures. It uses an option-overlay hedge strategy to manage overall volatility.

Why people hold it

• FDIG Runs 0.39%, under the 0.56% median for global thematic funds. Cheap real estate in a corner of the market where niche fees usually bite.
• Weights positions by trading volume rather than market cap, so the largest company in the group is not automatically the largest holding.fidelity.comfidelity.com 2
• Two engines under one ticker: crypto miners and exchanges on one side, digital payments processors on the other, about 50 names in all.fidelity.com
• Fidelity builds the index itself, screening on revenue plus text analysis of company disclosures, and rebalances quarterly over four days.fidelity.com

• HECO The hedge is the point: an option overlay sits on top of the crypto-equity basket to manage overall volatility, a different bargain than owning the sector raw.ssga.com
• Two exposures in one wrapper: operating companies expected to benefit from crypto and blockchain adoption, plus direct crypto exposure through ETFs and futures.ssga.com
• Actively managed, global mandate, roughly 60 holdings. The manager can rotate as the ecosystem shifts rather than ride a fixed index.
• Conventional 1940 Act ETF plumbing from State Street, run alongside Galaxy on the digital-asset side.

Worth knowing

• FDIG Non-diversified and industry-narrow. Fidelity's own documents flag bigger swings and meaningful exposure to a small number of issuers.fidelity.com
• You own crypto-linked equities, not crypto. Miners and payment processors can respond to very different news on any given day.fidelity.com
• Volume runs light next to the ETF giants, so spreads can widen and the market price can sit at a premium or discount to net asset value.fidelity.com

• HECO At 0.90% a year it prices above the typical fund in its crypto-equity peer group, and above its unhedged sibling DECO at 0.65%. The overlay is the upcharge.
• Thinly traded, so spreads can widen. Limit orders matter more here than in the category's heavyweights.
• Hedges cut both ways: damping volatility also means surrendering some of the sector's sharpest upswings. Short history too, with a 2024 launch.

Full FDIG profile⁠

Full HECO profile⁠