Fidelity Investments announced today in a press release the addition of four new ETFs to its thematic line-up, all of which are passively managed, thematic funds. The Fidelity Clean Energy ETF, the Fidelity Cloud Computing ETF, the Fidelity Digital Health ETF (FDHT), and the Fidelity Electric Vehicles and Future Transportation ETF all offer investors new ways to invest thematically.
Morningstar has reported that investments into thematic funds have more than tripled in the past three years; as of the end of March, assets under management in thematic funds were $595 billion globally.
“Thematic investing is a significant growth area as investors increasingly look for opportunities to enhance their portfolios and align their investments with their values and personal passions,” said Greg Friedman, Fidelity’s head of ETF management and strategy in the press release. “We continue to look for ways to leverage our investment expertise and investor insights to offer a wide array of innovative ETFs.”
Fidelity currently offers 33 mutual funds and ETFs that are thematic in nature; from sustainability to disruption, Fidelity offers a variety of ways for investors to gain exposure to certain segments of markets and investment themes.
“Fidelity’s quantitative team harnesses the scale, technology, and decades of data and analysis to help strengthen our investment processes, and, ultimately, help meet our customers’ evolving needs,” said Denise Chisholm, Fidelity’s director of quantitative market strategy in the press release. “In addition to sector and factor investments, thematic investments can serve as another tool for investors that are increasingly looking for differentiated investment options to help meet their distinct financial goals.”
What the ETFs Offer
The Fidelity Clean Energy ETF is benchmarked to the Fidelity Clean Energy Index.
The index contains securities across all market caps globally that produce, distribute, or provide equipment or technology that enables energy production from renewable sources such as wind, solar, hydrogen, and others.
The Fidelity Cloud Computing ETF is benchmarked to the Fidelity Cloud Computing Index.
The index contains securities across all market caps globally that provide products or services that encourage the adoption of cloud computing, typically through cloud services over the internet.
The Fidelity Digital Health ETF is benchmarked to the Fidelity Digital Health Index.
The index contains securities across all market caps globally that provide healthcare records management, surgical robots, connected healthcare devices, telemedicine, or other technology-driven services and products within the healthcare field.
The Fidelity Electric Vehicles and Future Transportation ETF is benchmarked to the Fidelity Electric Vehicles and Future Transportation Index.
The index contains securities across all market caps globally that manufacture electric and/or autonomous vehicles as well as their parts, including the technology and energy systems that they use, or else are involved in changing the future of transportation.
All four ETFs carry an expense ratio of 0.39%.
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