Fidelity Investments on Nov. 21 announced the launch of five actively managed equity ETFs and also highlighted a recent fee cut on another one of its active ETFs.
The five new funds build on Fidelity’s Enhanced ETF suite, launched in November 2023, and its Fundamental ETF suite, launched in February 2024, according to a Fidelity news release. The new funds bring Fidelity’s U.S.-listed lineup of ETFs and other exchange-traded products to 76, a Fidelity spokeswoman confirmed.
The Enhanced ETF suite uses a proprietary actively managed investment process “that quantitatively evaluates factors such as valuation, growth, profitability, momentum, and other non-traditional considerations,” the release said.
The Fundamental ETF suite meanwhile looks to “extract and combine high conviction investment ideas from multiple Fidelity fundamental active managers, employing a proprietary, disciplined investment process and a quantitative portfolio construction process,” according to the release.
“The new Enhanced and Fundamental strategies aim to provide additional choice for customers, including those who are looking for domestic all cap, international, emerging markets, and developed markets strategies, as evidenced by the rapidly growing ETF market,” said Greg Friedman, head of ETF management and strategy at Fidelity Investments, in the release.
The new funds are the Fidelity Enhanced U.S. All-Cap Equity ETF, the Fidelity Enhanced Emerging Markets ETF, the Fidelity Fundamental Developed International ETF, the Fidelity Fundamental Global ex-U.S. ETF and the Fidelity Fundamental Emerging Markets ETF, according to the release.
The new ETFs have gross expense ratios ranging from 0.18% for the Fidelity Enhanced U.S. All-Cap Equity ETF to 0.60% for the Fidelity Fundamental Emerging Markets ETF, the release shows.
Fidelity’s release also noted changes that took effect last month involving an active high yield ETF. The fund’s total expense ratio dropped to 0.35% from 0.45% and its name was changed to the Fidelity Enhanced High Yield ETF, “better reflecting the fund’s active investment strategy,” the release said. Previously known as the Fidelity High Yield Factor ETF, the ETF had assets totaling about $360 million as of Nov. 19, according to Morningstar’s website.
“Pricing, service, and research capabilities among other factors are part of our ongoing commitment to provide superior value to investors,” Friedman said in the release.
Fidelity’s lineup of ETFs and other ETPs had assets under management totaling $93 billion as of Oct. 31, according to the release. As of Sept. 30, Fidelity had assets under administration of $15 trillion, including $5.8 trillion of discretionary assets.
