Fidelity’s 8-Month-Old ETFs Exceed $1 Billion in Assets

The 10 passively managed sector exchange-traded funds that Fidelity Investments started trading in October have more than $1 billion in assets

Individuals and advisors have put $500 million into the ETFs in the past three months. Individuals and advisors have put $500 million into the ETFs in the past three months.

The 10 passively managed sector exchange-traded funds that Fidelity Investments rolled out eight months ago have now surpassed $1 billion in managed assets.

A significant portion of Fidelity’s asset growth occurred in the past three months with individuals and advisors investing more than $500 million in the ETFs, according to a statement released by Fidelity on Friday.

“Surpassing the $1 billion milestone in such a short period of time clearly demonstrates the growing demand for sector investments,” said Anthony Rochte, president of SelectCo, Fidelity’s dedicated sector investing division, in a statement. “We expect interest in sector investing, whether through our ETFs or our 44 actively managed sector mutual funds, to continue as individual investors and advisors seek to diversify their portfolios and use sectors as building blocks to help generate potential alpha and manage portfolio risk.”

As of July 8, data shows six of the 10 ETFs have each accumulated more than $100 million in assets under management — with its largest, Fidelity MSCI Health Care Index ETF, at $172 million.

On October 24, Fidelity launched these 10 new sector equity ETFs based on MSCI indexes and subadvised by BlackRock. Each ETF has an expense ratio of 12 basis points, among the lowest in the industry. The ETFs also trade without commissions for advisors using Fidelity’s RIA and National Financial’s trading platforms, as long as the funds are purchased online in a Fidelity brokerage account with a minimum opening balance of $2,500. Individual broker-dealers might impose their own ticket charges for trades.

Fidelity also offers 44 actively managed sector mutual funds with $71 billion in assets — as of June 30, up nearly 39% from one year ago.

Fidelity Sector ETFs

Name/Index

Ticker

Total Expense Ratio

Fidelity MSCI Industrials Index ETF MSCI USA IMI Industrials Index

FIDU

0.12%

Fidelity MSCI Health Care Index ETF MSCI USA IMI Health Care Index

FHLC

0.12%

Fidelity MSCI Financials Index ETF MSCI USA IMI Financials Index

FNCL

0.12%

Fidelity MSCI Information Technology Index ETF MSCI USA IMI Information Technology Index

FTEC

0.12%

Fidelity MSCI Telecommunication Services Index ETF MSCI USA IMI Telecommunication Services 25/50 Index[x]

FCOM

0.12%

Fidelity MSCI Consumer Discretionary Index ETF MSCI USA IMI Consumer Discretionary Index

FDIS

0.12%

Fidelity MSCI Consumer Staples Index ETF MSCI USA IMI Consumer Staples Index

FSTA

0.12%

Fidelity MSCI Energy Index ETF MSCI USA IMI Energy Index

FENY

0.12%

Fidelity MSCI Materials Index ETF MSCI USA IMI Materials Index

FMAT

0.12%

Fidelity MSCI Utilities Index ETF MSCI USA IMI Utilities Index

FUTY

0.12%

 

--Related on ThinkAdvisor:

How Does Passive Beat Active? Let Me Count the Ways

4 Ways Fidelity Can Capture the ETF Market

In Competitive Stroke, Fidelity Launches Low-Cost, No-Commission ETFs

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