Fidelity Investments has launched its first suite of passive sector exchange-traded funds.
Fidelity’s 10 new passive sector ETFs have started trading on the New York Stock Exchange.
These ETFs will be the lowest-cost passively managed sector ETFs in the industry with total expense ratios of just 0.12 per cent, nearly 80 per cent below the industry average for passive sector ETFs. 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 USD50bn in assets. 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,” says 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,” says 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 customisable screeners for finding sector stocks, ETFs and mutual funds.”
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 utilities. Fidelity’s 10 new passively managed sector ETFs are:
1.Fidelity MSCI Industrials Index ETF which tracks the MSCI USA IMI Industrials Index
2.Fidelity MSCI Health Care Index ETF which tracks the MSCI USA IMI Health Care Index
3.Fidelity MSCI Financials Index ETF which tracks the MSCI USA IMI Financials Index
4.Fidelity MSCI Information Technology Index ETF which tracks the MSCI USA IMI Information Technology Index
5.Fidelity MSCI Telecommunication Services Index ETF which tracks the MSCI USA IMI Telecommunication
6.Fidelity MSCI Consumer Discretionary Index ETF which tracks the MSCI USA IMI Consumer Discretionary Index
7.Fidelity MSCI Consumer Staples Index ETF which tracks the MSCI USA IMI Consumer Staples Index
8.Fidelity MSCI Energy Index ETF which tracks the MSCI USA IMI Energy Index
9.Fidelity MSCI Materials Index ETF which tracks the MSCI USA IMI Materials Index
10.Fidelity MSCI Utilities Index ETF which tracks the MSCI USA IMI Utilities Index