Fidelity lists ETFs on SIX Swiss Exchange

Sep 7th, 2018 | By | Category: Equities

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Fidelity International has made its Swiss ETF debut with the cross-listing of the Fidelity US Quality Income UCITS ETF on SIX Swiss Exchange.

Fidelity International lists ETFs on SIX Swiss Exchange

Fidelity International has listed its US quality income ETF on SIX Swiss Exchange.

The listing comprises five separate trading lines across various currency, currency-hedged and income or distributing share classes.

The asset manager first launched the ETF in April 2017 via a listing on the London Stock Exchange. This was followed by a cross-listing onto Xetra.

The funds track proprietary in-house index, the Fidelity US Quality Income Index, designed to provide exposure to high quality companies with attractive dividend yields within the US stock universe respectively.

The index takes the 1000 largest US-listed stocks as its starting universe. As a first step, any security not paying a dividend or with an excessively high payout ratio or negative five-year dividend growth is excluded.

Constituents are then evaluated according to quality factors with each security receiving a composite score based on an equal-weighted combination of their z-scores across three factors (cash flow margin, return on invested capital and free cash flow stability). The bottom half of the ranked securities are subsequently excluded.

The remaining constituents are then assigned a size-adjusted dividend composite score by multiplying their trailing 12-month dividend yield by a measure of their company size. Approximately 125 of the highest ranked stocks are selected for final inclusion with the methodology allowing for sector and stock diversification by employing a sector/size-adjusted market cap weighting scheme.

The ETF is available on SIX with accumulating share classes trading in either US dollars (FUSA SE) or Swiss francs (FUSC SE) or in a distributing share class trading in US dollars (FUSD SE). Currency-hedged versions of the ETF are available offering hedging between the US dollar and the euro (FUSU SE) or pound sterling (FUSP SE). Both of the currency-hedged versions reinvest income within the fund.

The total expense ratio (TER) of the unhedged share classes is 0.30% while the currency-hedged versions come with TERs of 0.35%.

Fidelity is the third new ETF issuer to join the exchange in 2018 after JP Morgan and Franklin Templeton and brings the total number of ETF providers on SIX to 25. The total number of ETFs listed on the exchange now stands at 1,394.

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