Fidelity International has announced the expansion of its Research Enhanced ETF range with two new investment grade corporate bond ETFs: the Fidelity USD Corporate Bond Research Enhanced UCITS ETF (FBIU) and the Fidelity EUR Corporate Bond Research Enhanced UCITS ETF (FBIE).
The firm writes that both ETFs are listed on Xetra and Borsa Italiana and the London Stock Exchange tomorrow, with further European listings to follow. The ongoing charges figure (OCF) will be discounted at 0.03 per cent for the first six months of launch, rising to 0.19 per cent thereafter for the non-hedged share classes (0.24 per cent for EUR hedged).
Fidelity’s Research Enhanced ETF range spans equity and fixed income strategies and includes both Core and Paris Aligned Benchmark (PAB) approaches.
The firm writes that the new ETFs sit within Fidelity’s Core Research Enhanced range, offering investors a distinctive way to access active, benchmark-aware strategies through a trusted and established research platform. The strategies are designed to achieve income and capital growth through disciplined security selection, rather than relying on macro views or duration positioning, allowing investors to enhance core allocations while maintaining familiar risk characteristics.
The ETFs provide diversified exposure to the US and European investment grade corporate bond markets, aiming to preserve the regional, sector, rating and currency characteristics of their respective Bloomberg benchmarks (the Bloomberg US Corporate Investment Grade Index and the Bloomberg Euro Aggregate Corporate Index). They also promote environmental and social characteristics by targeting an ESG score higher than that of the benchmark, the firm says.
The firm writes that the launch of these SFDR Article 8 ETFs strengthens Fidelity’s fixed income ETF offering, which has USD4.0 billion assets under management, and broadens client choice across core allocations.
Neil Davies, Head of ETF Product & Capital Markets for Europe and Asia Pacific at Fidelity International, says: “Ongoing geopolitical risks, uneven global growth and a late-cycle backdrop are increasing demand for active, resilient, benchmark-aware solutions that can navigate uncertainty without taking outsized risk. Our new ETFs reflect how investors are increasingly accessing fixed income today – using active ETFs for flexibility, transparency and cost-efficient implementation, while increasing allocations to fixed income for income, diversification and portfolio stability.”
Each ETF will be supported by USD20 million seed capital from authorised market participant Susquehanna.
