Fidelity Investments has expanded its exchange-traded fund (offering for investors and financial advisors with the introduction of the company’s first suite of actively managed fixed income ETFs.
Fidelity’s three new actively managed fixed income ETFs – Fidelity Total Bond ETF (FBND), Fidelity Limited Term Bond ETF (FLTB) and Fidelity Corporate Bond ETF (FCOR) – have begun trading on the New York Stock Exchange.
Each of the new ETFs have total expense ratios of 0.45 per cent. Investors and registered investment advisors (RIAs) can purchase the three ETFs commission-free online through one of Fidelity’s brokerage platforms.
“With the launch of these three Fidelity ETFs, investors and advisors who are seeking the benefits and flexibility of an ETF vehicle can now access three of our flagship active bond strategies,” says Bob Brown, president of Fidelity’s bond division. “By leveraging Fidelity’s active fixed income investment management capabilities, including one of the deepest research teams in the industry, our new ETFs also offer investors and advisors the potential to outperform an index.”
The Fidelity Total Bond ETF is managed by Ford O’Neil, Pramod Atluri and Michael Foggin, the Fidelity Limited Term Bond ETF is managed by Rob Galusza and David Prothro, and the Fidelity Corporate Bond ETF is managed Michael Plage and Prothro.
“While active ETFs are still in their infancy, we are seeing increased demand and believe that the market is ready for more choice in the active approaches offered through the ETF structure,” says Scott E Couto, president of Fidelity Financial Advisor Solutions. “We believe our ETF offering offers investors and advisors excellent choice across the duration spectrum, including a true, core fixed income strategy.”