On Thursday, Fidelity Investments launched a pair of new actively managed equity ETFs.
“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,” noted Greg Friedman, head of ETF Management and Strategy at Fidelity Investments.
These two new funds are part of Fidelity’s series of Enhanced ETFs. Fidelity’s Enhanced ETFs use a research-focused approach to seek stocks with strong potential for long-term returns.
This approach screens for a variety of factors, including growth, quality, and valuation. Both funds are now available on the NYSE.
Across the Cap Spectrum
The Fidelity Enhanced U.S. All-Cap Equity ETF (FEAC) offers capital appreciation for its investors. This fund has a net expense ratio of 0.18%.
FEAC primarily allocates its assets toward U.S. equity securities. These investments are primarily made in common stocks across a variety of cap sizes.
Gaining more exposure to the wide U.S. cap spectrum can make a great deal of sense right now. With the Federal Reserve trimming interest rates, companies of all sizes could have an easier means to expand operations.
Active Emerging Market Strategy
Traders searching for an emerging market ETF strategy may wish to consider the Fidelity Enhanced Emerging Markets ETF (FEMR). The fund’s net expense ratio sits at 38 basis points.
As the fund’s title implies, FEMR largely invests in companies deeply involved in emerging markets. This includes emerging market issuers and investments economically linked to emerging markets.
While emerging markets intrinsically carry more risk, that danger is alleviated by Fidelity’s active management team. An active portfolio team can be more adaptable in responding to changes in the market or broader economy.
“Fidelity has been a leading provider of active ETFs so it is great to see them expand their lineup further,” adds Todd Rosenbluth, head of research at VettaFi. “Their suite of enhanced ETFs provides low-cost, core exposure to an investment style.”
For more information, please visit VettaFi.com | ETF Trends.
