Fidelity has added a pair of ESG strategies to its lineup of non-transparent actively managed ETFs.
Listed on NYSE Arca, they are the Fidelity Sustainability US Equity ETF (FSST US) and the Fidelity Women’s Leadership ETF (FDWM US).
The Fidelity Sustainability US Equity ETF invests in equity securities of US companies the fund’s managers believe have proven or improving sustainability practices based on an evaluation of such companies’ individual ESG profile.
The fund is co-managed by Nicole Connolly and Michael Robertson and charges an expense ratio of 0.59%
The Fidelity Women’s Leadership ETF invests in equity securities of companies globally that prioritize and advance women’s leadership and development. Such companies include those that include a woman as a member of the senior management team, are governed by a board for which women represent at least one-third of all directors, or, in the opinion of the fund’s manager, have adopted policies designed to attract, retain and promote women.
It is managed by Nicole Connolly and comes with an expense ratio of 0.59%
Pam Holding, Co-Head of Equity and Head of Sustainable Investing at Fidelity Investments, said: “Investors are increasingly interested in aligning their values and priorities with their investment decisions. Fidelity’s new ESG mutual funds and ETFs offer these investors new ways to align their financial and personal goals.
“Fidelity will continue to expand our sustainable investing solutions and resources to help our customers connect their financial goals to positive outcomes in the broader world.”
The funds make use of an innovative proprietary active ETF wrapper methodology that maintains the benefits of the ETF structure, provides information to market participants to promote efficient trading of shares, and, by not revealing portfolio composition, preserves the ability to add value through active management.
Following this latest launch, the asset manager’s US-domiciled ETF lineup now includes nine actively managed equity ETFs, five actively managed bond ETFs, 15 factor ETFs, 11 passive equity sector ETFs, and one passive broad market equity ETF.