Fidelity has launched five new active equity ETFs as demand for actively managed strategies continues to grow.
On November 21, the firm launched Fidelity Enhanced U.S. All-Cap Equity ETF (FEAC), Fidelity Enhanced Emerging Markets ETF (FEMR), Fidelity Fundamental Developed International ETF (FFDI), Fidelity Fundamental Global ex-U.S. ETF (FFGX), and Fidelity Fundamental Emerging Markets ETF (FFEM).
“The expansion of Fidelity’s core active equity suites speaks to our ability to combine the best of our fundamental and quantitative teams to deliver differentiated actively managed investment products,” Greg Friedman, Head of ETF Management and Strategy at Fidelity Investments, said in a statement.
The new active ETFs build upon Fidelity’s Enhanced ETF suite, which launched in November 2023, and Fidelity’s Fundamental ETF suite, which launched in February 2024. The NYSE lists the new Enhanced ETFs, while the Cboe lists new Fundamental ETFs.
The Enhanced ETF suite utilizes a proprietary, disciplined, active investment process. The process quantitatively evaluates factors, including valuation, growth, profitability, and momentum, among other non-traditional considerations. The newly launched FEAC and FEMR charge 38 and 55 basis points, respectively.
The Fundamental ETF suite seeks to extract and combine high-conviction investment ideas from multiple Fidelity fundamental active managers. The Fundamental ETFs utilize a proprietary, disciplined investment process and a quantitative portfolio construction process. FFDI and FFGX charge 55 basis points, and FFEM charges 60 basis points.
“The new Enhanced and Fundamental strategies aim to provide additional choice for customers, including those looking for domestic all cap, international, emerging markets, and developed markets strategies, as evidenced by the rapidly growing ETF market,” Friedman said in a statement.
Other Changes to Fidelity Active ETFs
Last month, Fidelity made enhancements to the Fidelity Enhanced High Yield ETF (FDHY ). The fund’s total expense ratio was decreased from 45 basis points to 35 basis points, effectively lowering costs for investors.
At the same time, FDHY’s name was changed to better reflect its active strategy. However, the fund’s methodology remained the same.
See more: Fidelity Slashes Price on Its Active High Yield ETF
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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