Fidelity International Expands Active ETF Offering in Europe

Strategic Insights -

Fidelity International has announced the expansion of its active ETF offering in Europe with its Fundamental Equity ETF range, launching with two new products: the Fidelity US Fundamental Large Cap Core UCITS ETF and the Fidelity US Fundamental Small-Mid Cap UCITS ETF. According to Neil Davies, Head of ETF Product & Capital Markets for Europe and Asia Pacific at Fidelity International, this launch seeks to meet investor demand for higher-conviction strategies that leverage proprietary Fidelity Investments' research through an ETF wrapper. The firm believes that higher-conviction ETFs have the potential to drive the next phase of growth in the European ETF market.

Key Takeaways:

  • Fidelity International has expanded its active ETF offering in Europe with its Fundamental Equity ETF range, launching with two new products: the Fidelity US Fundamental Large Cap Core UCITS ETF and the Fidelity US Fundamental Small-Mid Cap UCITS ETF.
  • The ETFs are sub-advised by Fidelity Investments, a separate US-based company, and are available to clients of Fidelity International through its Irish UCITS ETF range.
  • The Fundamental Equity ETF range provides access to Fidelity Investments' active management and bottom-up research capabilities across the US equity investment universe.
  • Both ETFs employ consistent and repeatable processes to extract and combine high-conviction investment ideas from multiple Fidelity Investments portfolio managers into single strategies.
  • The Fidelity US Fundamental Small-Mid Cap UCITS ETF is the first Irish-domiciled UCITS ETF in Europe to employ the principles-based semi-transparent structure recently approved by the Central Bank of Ireland.
  • The ETFs seek long-term growth, with the Fidelity US Fundamental Small-Mid Cap UCITS ETF investing in securities with small to medium market capitalisations and the Fidelity Fundamental Large Cap Core UCITS ETF investing in equity securities of US companies with large market capitalisations.
  • Both ETFs enable investors to enjoy many of the core benefits of the ETF wrapper, including the ability to trade throughout the day.
  • Fidelity International has become the second-largest active ETF provider in Europe by AUM since launching its ETF platform in 2017.
  • The firm continues to look for opportunities to grow and innovate its product suite by adding strategies that help meet the evolving needs of investors.

Statistics:

  • Since launching its ETF platform in 2017, Fidelity International has become the second-largest active ETF provider in Europe by AUM.
  • The two new ETFs are listed with a EUR trading line on Xetra on September 3, with further USD and GBP listings on the London Stock Exchange.
  • Additional SIX and Borsa Italiana listings are to follow.

Sources:

  • [Source: Fidelity International press release]
  • [Source: Fidelity International website]
  • [Source: Central Bank of Ireland website]