Fidelity Investments has announced the launch of two new thematic ETFs – Fidelity Crypto Industry and Digital Payments ETF (FDIG) and Fidelity Metaverse ETF (FMET) – and five new fixed income sustainable funds and ETFs – Fidelity Sustainable Core Plus Bond Fund (FIAEX), Fidelity Sustainable Core Plus Bond ETF (FSBD), Fidelity Sustainable Low Duration Bond Fund (FAPGX), Fidelity Sustainable Low Duration Bond ETF (FSLD), and Fidelity Sustainable Intermediate Municipal Income Fund (FSIKX).
The firm writes that the two new thematic ETFs expand Fidelity’s line-up into the crypto and metaverse industries. Fidelity Crypto Industry and Digital Payments ETF, which will not offer direct exposure to cryptocurrency, delivers the opportunity to invest in companies that support the broader digital assets ecosystem, including those involved in crypto mining and trading, blockchain technology, and digital payments processing.
Fidelity Metaverse ETF can help investors invest in the evolution and future of the internet, the firm writes, by providing access to companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the metaverse, such as computing hardware and components, digital infrastructure, design and engineering software, gaming technology and software, web development and content services, and smart phone and wearable technology. Fidelity also released a new Viewpoints article about the metaverse: Enter the metaverse.
“Leveraging Fidelity’s decades of investment expertise, we are focused on growing our broad product line-up with innovative strategies that offer choice, value and new opportunities to investors,” says Greg Friedman, Fidelity’s Head of ETF Management and Strategy. “We continue to see demand, particularly from young investors, for access to the rapidly growing industries in the digital ecosystem, and these two thematic ETFs offer investors exposure in a familiar investment vehicle.”
These two new passively managed ETFs will have expense ratios of 0.39 per cent, the lowest available for ETFs of their kind, the firm says. These are self-indexed ETFs, utilising Fidelity’s proprietary indices, constructed by Fidelity’s quantitative investing team, to identify equity securities that offer exposure to these rapidly growing industries. With this launch, Fidelity will offer 51 ETFs with more than USD33 billion in assets under management.
Fidelity’s five new sustainable fixed income mutual funds and ETFs will use Fidelity’s proprietary ESG ratings frameworks in addition to third-party ESG ratings to evaluate an issuer’s sustainable business practices. The mutual funds will have retail and adviser share classes.
“Fidelity continues to grow its sustainable investing lineup, with a range of equity, fixed income, and asset allocation strategies, as investors continue to seek opportunities to invest alongside their values and influence positive change in the world,” says Pam Holding, Co-Head of Equity and Head of Sustainable Investing at Fidelity Investments. “With the addition of these new sustainable fixed income strategies, our clients now have access to building blocks across multiple asset classes to help address their investment goals and priorities.”
