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Fidelity® 'Enhances' ETF Lineup With Six New Active Equity Strategies and Reduced Pricing on Factor ETFsFidelity Investments® today announced the launch of six new active equity ETFs, which will be available commission-free for individual investors and financial advisors through Fidelity's online brokerage platforms on November 20, 2023. The new suite includes:
The enhanced ETFs will be competitively priced with expense ratios ranging from 0.18% to 0.28%. Today, Fidelity also announced it reduced the total expense ratios of its 13 equity factor ETFs by nearly half, saving investors $6 million per year. "Fidelity is committed to offering investors innovative ETFs to meet their evolving needs, including active, passive, and factor strategies," said Greg Friedman, Fidelity's Head of ETF Management and Strategy. "We continue to see demand for active ETFs as investors seek the potential for outperformance with the benefits of an ETF wrapper. The addition of these six active equity ETFs can serve as core building blocks for investors to meet this need."
Fidelity Enhanced ETFs
Each actively managed fund employs a proprietary, disciplined investment process that seeks to outperform its benchmark by, in general, quantitatively evaluating factors such as historical valuation, growth, profitability, and other factors. The portfolios are engineered to provide core equity exposure while seeking to produce consistent returns above their benchmarks.
Factor ETF Expense Ratio Reductions
"The size and scale of Fidelity combined with our leadership in the ETF space allows us to provide exceptional value, whether it is through price, service, research capabilities or other factors that are important to our customers," continued Friedman.
Fidelity's Growing ETF Platform
About Fidelity Investments
Free commission offer applies to online purchase of ETFs in a Fidelity retail account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. The risks associated with the securities of companies that represent a disruptive theme include small or limited markets for such securities, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. The securities of companies that rely heavily on technology tend to be more volatile and rapid changes to technologies affecting a company's products may adversely affect such company's results. The funds may have additional volatility because of their narrow concentration in specific industries and the companies within their disruptive themes. Non-diversified funds that focus on a relatively small number of stocks tend to be more volatile than diversified funds and the market as a whole. The securities of smaller, less well known companies can be more volatile than those of larger companies. Value stocks can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Before investing in any exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully. Fidelity, Fidelity Investments and the pyramid logo are registered service marks of FMR LLC. The third party trademarks appearing herein are the property of their respective owners. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 National Financial Services LLC, Member NYSE, SIPC, 245 Summer Street, Boston, MA 02110 Fidelity Distributors Company LLC, 500 Salem Street, Smithfield, RI 02917
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