Fidelity converts six mutual funds to active ETFs

Nov 21st, 2023 | By | Category: ETF and Index News

Fidelity Investments has transformed six of its mutual funds into fully transparent ETFs, each offering core equity exposure enhanced through an active multi-factor investment approach.

Greg Friedman, Head of ETF Management and Strategy at Fidelity Investments

Greg Friedman, Head of ETF Management and Strategy at Fidelity Investments.

The line-up includes three ETFs dedicated to US large-cap stocks, encompassing a general market exposure as well as two distinct strategies tailored to growth and value-oriented stocks.

They are the Fidelity Enhanced Large Cap Core ETF (FELC US), Fidelity Enhanced Large Cap Growth ETF (FELG US), and Fidelity Enhanced Large Cap Value ETF (FELV US).

Each fund comes with an expense ratio of 0.18%.

Additionally, two of the remaining ETFs offer comprehensive coverage of the US mid-cap and small-cap segments, while the sixth fund strategically targets a broad range of developed markets outside the US.

They are the Fidelity Enhanced Mid Cap ETF (FMDE US), Fidelity Enhanced Small Cap ETF (FESM US), and Fidelity Enhanced International ETF (FENI US).

The US mid-cap strategy has an expense ratio of 0.23%, while the US small-cap and developed ex-US funds cost 0.28%.

Fidelity’s investment approach aims to deliver similar risk characteristics as the ETFs’ underlying benchmarks while aiming for long-term outperformance by quantitatively evaluating factors such as value, growth, and profitability, among others.

All six ETFs are available commission-free for individual investors and financial advisors through Fidelity’s online brokerage platforms,

Greg Friedman, Head of ETF Management and Strategy at Fidelity Investments, commented: “Fidelity is committed to offering investors innovative ETFs to meet their evolving needs, including active, passive, and factor strategies. We continue to see demand for active ETFs as investors seek the potential for outperformance with the benefits of an ETF wrapper. The addition of these six active equity ETFs can serve as core building blocks for investors to meet this need.”

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