Fidelity Investments®, a leading global asset management firm with $1.9 trillion in managed assets, has announced it has significantly expanded its sector investing platform for investors and…
Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy
financial advisors with the introduction of the company’s first suite of passive sector exchange traded funds (ETFs).
Fidelity’s 10 new passive sector ETFs will commence trading on the New York Stock Exchange today, October 24, 2013, at 9:30 a.m. Eastern Time. These ETFs will be the lowest-cost passively managed sector ETFs in the industryiii with total expense ratios of just 0.12 percentiv — nearly 80 percent below the industry average for passive sector ETFsv. In addition, investors and registered investment advisors (RIAs) can purchase Fidelity’s ETFs commission-free online* through one of Fidelity’s brokerage platforms.
Fidelity, which has more than 30 years of global sector investing experience, currently offers 44 actively managed sector mutual funds with more than $50 billion in assetsvi, the industry’s largest lineup of sector mutual funds.vii This new suite of sector ETFs complements the firm’s sector mutual funds, ensuring that investors have access to both actively managed and passively managed products.
“Since the financial crisis five years ago, investors and advisors have told us that they are looking for additional ways to diversify their portfolios and get exposure to specific industries outside of the typical cap-weighted or style specific options such as large or small cap, or growth and value,” said Anthony Rochte, president of SelectCo, the company’s dedicated sector investing division. “Our new passive sector ETFs can provide for that diversification, serving as building blocks to help investors and advisors find new ways of generating alpha through asset allocation and better manage portfolio risk.”
Fidelity is also making it easier for investors and advisors to learn more about the growing field of sector investing through the creation of sector-specific micro sites. These sites make it easy to access Fidelity’s latest sector thought leadership, research, guidance tools and education.
“It’s not enough to just provide new products today,” said Ram Subramaniam, president of Fidelity Brokerage. “To help our 10 million brokerage customers better understand sectors and make more informed investment decisions, we knew we needed to develop a world-class sector platform that brings together investment insights, research, education and highly customizable screeners for finding sector stocks, ETFs and mutual funds.”viii
10 Fidelity Passive Sector ETFs
With total expense ratios of just 0.12 percent, the new Fidelity ETFs are the industry’s lowest cost passive ETFs tracking the 10 major equity sectors — consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services and utilitiesix. Fidelity’s 10 new passively managed sector ETFs are:
| Fidelity Passive Sector ETF (Index) | Ticker | Total Expense Ratio |
| Fidelity MSCI Industrials Index ETF MSCI USA IMI Industrials Index
|
FIDU | 0.12% |
| Fidelity MSCI Health Care Index ETF MSCI USA IMI Health Care Index |
FHLC | 0.12% |
| Fidelity MSCI Financials Index ETF MSCI USA IMI Financials Index |
FNCL | 0.12% |
| Fidelity MSCI Information Technology Index ETF MSCI USA IMI Information Technology Index |
FTEC | 0.12% |
| Fidelity MSCI Telecommunication Services Index ETF MSCI USA IMI Telecommunication Services 25/50 Indexx |
FCOM | 0.12% |
| Fidelity MSCI Consumer Discretionary Index ETF MSCI USA IMI Consumer Discretionary Index |
FDIS | 0.12% |
| Fidelity MSCI Consumer Staples Index ETF MSCI USA IMI Consumer Staples Index |
FSTA | 0.12% |
| Fidelity MSCI Energy Index ETF MSCI USA IMI Energy Index |
FENY | 0.12% |
| Fidelity MSCI Materials Index ETF MSCI USA IMI Materials Index |
FMAT | 0.12% |
| Fidelity MSCI Utilities Index ETF MSCI USA IMI Utilities Index |
FUTY | 0.12% |
As part of a broader strategic ETF relationship announced earlier this year, Fidelity has hired BlackRock as sub-adviser for its 10 passive sector ETFs, leveraging the firm’s passive investment management capabilities and scale.
MSCI is the benchmark provider for Fidelity’s new 10 passive sector ETFs. Fidelity selected MSCI, widely recognized for its global equity indexes, because of its transparent methodology and broad market coverage. The benchmarks for the new sector ETFs cover about 99 percent of the U.S. investable equity market, including small cap stocks.
“We know the demand for specialized sector products and solutions, especially through advisors, will only continue to expand and evolve,” said Scott E. Couto, president of Fidelity Financial Advisor Solutions. “To ensure we continue to meet our customers’ needs in this area, Fidelity is putting intense, dedicated focus on extending its already industry-leading sector capabilities with new products and added resources.”
Fidelity has already filed preliminary registration statements with the U.S. Securities and Exchange Commission (SEC) for five actively managed fixed income ETFs, which are pending approval. Once launched, these new ETFs will be managed by investment professionals in Fidelity’s Fixed Income division in Merrimack, NH.
Source: ETFWorld.com
Lascia un commento