In the latest big news for the burgeoning ETF landscape, Fidelity will convert six mutual funds to ETFs. The firm’s suite will see its thematic ETFs investing roster expand and diversify significantly. That may interest investors in a year in which particularly mega-cap tech has meaningfully contributed to growth. What’s more, the new thematic ETF conversions offer some added competition to existing thematic strategies.
The converted Fidelity Disruptive funds include the Automation, Communications, Finance, Medicine, Technology, and Disruptors funds. The new disruptive ETFs include the Automation ETF (FBOT ), the Communications ETF (FDCF ), the Finance ETF (FDFF ), the Medicine ETF (FMED ), the Disruptive Tech ETF (FDTX ), and the Disruptors ETF (FDIF ).
The first five strategies have already launched, with the FDIF ETF a fund of funds strategy investing across the first five. FDIF will launch on June 20th. All six will charge a total expense ratio of 50 basis points, meanwhile.
Adding Thematic ETFs
The strategies join a suite led by the Fidelity MSCI Information Technology Index ETF (FTEC ) at $6.7 billion in AUM. FTEC leads eleven total strategies with more than $1 billion in ETF AUM across a variety of equity sectors. Just two of the eleven invest in non-equity areas, the Fidelity Total Bond ETF (FBND ) and the Fidelity MSCI Real Estate Index ETF (FREL ).
The Fidelity Blue Chip Growth ETF (FBCG ) and the Fidelity Crypto Industry Digital Payments ETF (FDIG ) have led based on returns, returning 34.8% and 53.1% respectively YTD.
The new ETFs will invest actively amid a strong year so far for active, thematic ETFs. The thematic ETF suite will add some active heft to Fidelity’s suite. FBND stands out as the only active ETF at the firm with more than $4 billion in AUM. Altogether, the addition of the six ETFs brings the firm’s ETF lineup to 15 strategies holding more than $1 billion in AUM.
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