Fidelity Investments has expanded its ETF lineup with the introduction of three multi-factor ETFs – Fidelity Small-Mid Factor ETF (FSMD), Fidelity Targeted International Factor ETF (FDEV) and Fidelity Targeted Emerging Markets Factor ETF (FDEM).
The new ETFs are competitively priced with total expense ratios of just 0.29 per cent for FSMD, 0.39 per cent for FDEV and 0.45 per cent for FDEM. All three ETFs began trading today, the Fidelity Small-Mid Factor ETF on the New York Stock Exchange, and both the Fidelity Targeted International Factor ETF and the Fidelity Targeted Emerging Markets Factor ETF on the CBOE BZX Exchange, Inc. They are available to individual investors and financial advisors for purchase commission-free through Fidelity’s online brokerage platforms. These new multi-factor ETFs apply Fidelity’s in-house quantitative analysis and proprietary risk management to seek differentiated sources of return to help drive better portfolio outcomes.
“We have leveraged years of experience in both quantitative and fundamental research to develop our unique approach in constructing our entire factor ETF suite, including these three new funds,” says Greg Friedman, Fidelity’s head of ETF management and strategy. “Our in-house quantitative analysis team conducts comprehensive factor research and leverages our active management processes to design ETFs with investor outcomes in mind.”
FDEV and FDEM both leverage Fidelity’s unique multifactor methodology and also target securities least correlated with the performance of the S&P 500. FSMD applies Fidelity’s multifactor approach to both small and mid-cap stocks — a unique universe that has historically provided better exposure to the size factor than investing in only small-caps.
By adding these new products to the Fidelity ETF line-up, investors now have access to a competitively priced suite of 13 factor ETFs, three actively-managed bond ETFs, 11 passive equity sector ETFs, and Fidelity ONEQ, all available for purchase commission–free on Fidelity’s ETF platform. As announced earlier this month, Fidelity is in the process of expanding its commission-free ETF platform for individual investors and advisors to include more than 500 ETFs. Effective today, more than 300 iShares ETFs are available for online purchases commission-free. This is the first phase of the platform’s expansion, with additional high-quality ETFs to be added in the coming months.
“The three new factor ETFs are available commission-free and competitively priced below the industry average,” says Friedman. “When you combine the expense ratio with access to Fidelity’s research, tools, trade execution, and product offering, we believe there is no better value in the industry.”
