Fidelity Investments is adding four new, competitively priced active equity exchange-traded funds to its lineup on or about this Thursday, expanding its total ETF offerings to 37 including active equity and bond ETFs, factor ETFs and sector ETFs, it said Monday. The announcement comes about four months after it filed with regulators to introduce the products.
The new ETFs are Fidelity Growth Opportunities ETF (FGRO), Fidelity Magellan ETF (FMAG), Fidelity Real Estate Investment ETF (FPRO) and Fidelity Small-Mid Cap Opportunities ETF (FSMO). All four will be listed on the Cboe BZX Exchange.
The first three will each have a net expense ratio of 0.59% and use the same portfolio managers and research teams as their like-named mutual funds, while the Fidelity Small-Mid Cap Opportunities ETF will have a net expense ratio of 0.64% and utilize a new quantitative approach, which the firm said “extracts fundamental insights from Fidelity’s experienced small-cap, mid-cap, growth and value investment teams.”
In June, Fidelity launched its first suite of active equity ETFs: Fidelity Blue Chip Growth ETF (FBCG), Fidelity Blue Chip Value ETF (FBCV) and Fidelity New Millennium ETF (FMIL), becoming the latest asset manager to bring to market actively managed nontransparent ETFs.
Fidelity’s Magellan Fund began trading in 1963 and was led by Peter Lynch from 1977 to 1990 — when it grew from about $18 million in assets to $14 billion. Today, FMAGX has roughly $22 billion in assets with an expense ratio of 0.77%.
New ETF Details
Among the new ETFs, FMAG is managed by Sammy Simnegar and will seek long-term growth of capital and normally invest primarily in equity securities.
FGRO is led by Kyle Weaver and will seek long-term growth of capital and normally invest mainly in equity securities of companies that Fidelity Management & Research Co. believes have above-average growth potential.
FPRO is managed by Steve Buller and will seek above-average income and long-term capital growth, consistent with reasonable investment risk, and normally invest mainly in equity securities and normally invest at least 80% of its assets in securities of companies principally engaged in the real estate industry and other real estate related investments.