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Fidelity Launches 6 New Active Stock ETFs

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What You Need to Know

  • The new ETFs' expense ratios will range from 0.18% to 0.28%.

Fidelity is launching six new active equity exchange-traded funds, expanding its ETF offerings to 64. The new ETFs, with expense ratios ranging from 0.18% to 0.28%, will be available commission-free on the firm’s online brokerage platforms on Nov. 20.

The new ETFs arose from Fidelity’s conversion of its actively managed Enhanced Index mutual fund suite into ETFs, a plan the firm announced in June.

The investment giant also announced Monday that it’s nearly halving the total expense ratios of its 13 equity factor ETFs, which will save investors $6 million annually.

Why it matters: Fidelity continues to see demand for active ETFs “as investors seek the potential for outperformance with the benefits of an ETF wrapper,” Greg Friedman, Fidelity’s ETF management and strategy head, said. “The addition of these six active equity ETFs can serve as core building blocks for investors to meet this need.”

Fidelity had $11.5 trillion in assets under management at Sept. 30. Individual investors and advisors have access to more than 2,500 ETFs on its online platform, available for commission-free purchase, and the company had over $930 billion in ETF client assets on Oct. 31.

Fidelity’s own ETF lineup now will comprises 21 actively managed equity, 12 fixed income, 13 equity factor, six passive thematic and 11 passive equity sector ETFs, and the Fidelity Nasdaq Composite Index ETF (ONEQ).

What to know: Each new transparent ETF will maintain the same investment objectives and management style as its former mutual fund counterpart. The new ETFs will also see price reductions by about half compared to the mutual funds, Fidelity said.

The new ETFs and their expense ratios are:

  • Fidelity Enhanced Large Cap Core ETF (FELC), 0.18%
  • Fidelity Enhanced Large Cap Growth ETF (FELG), 0.18%
  • Fidelity Enhanced Large Cap Value ETF (FELV), 0.18%
  • Fidelity Enhanced Mid Cap ETF (FMDE), 0.23%
  • Fidelity Enhanced Small Cap ETF (FESM), 0.28%
  • Fidelity Enhanced International ETF (FENI), 0.28%

Anna Lester, Max Kaufmann and Shashi Naik are their long-tenured co-managers.

Fidelity is committed to offering investors innovative ETFs to meet their evolving needs, including active, passive, and factor strategies,” Friedman said.

Photo: Shutterstock


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