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Fidelity Launches 4 Passive Thematic ETFs

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What You Need to Know

  • The ETFs invest in clean energy, cloud computing, digital health and electric vehicles.
  • All four funds invest at least 80% of their assets in proprietary Fidelity indexes and carry the names of those indexes.
  • All four funds have a net expense ratio of 0.39%.

Fidelity Investments has expanded its offerings of thematic ETFs with the launch of four new funds, including two focused on renewable energy.

Each new ETF invests at least 80% of its assets in the firm’s proprietary all-cap index of the same name, trades on the Cboe BZX Exchange and has a net expense ratio of 0.39%.

The four new funds are the Fidelity Clean Energy ETF (FRNW), Fidelity Cloud Computing ETF (FCLD), Fidelity Digital Health ETF (FDHT) and Fidelity Electric Vehicles and Future Transportation ETF (FDRV).

“Thematic investing is a significant growth area as investors increasingly look for opportunities to enhance their portfolios and align their investments with their values and personal passions,” said Greg Friedman, Fidelity head of ETF management and strategy.

With these new additions, Fidelity now has 33 mutual funds and ETFs covering several thematic categories, including disruption, megatrends and sustainability.

The Four New ETFs

The Fidelity Clean Energy ETF invests in companies that distribute, produce or provide technology or equipment for renewable energy, including solar, wind and hydrogen.

The Fidelity Cloud Computing ETF invests in a global universe of companies that provide products or services involved in the increased adoption of cloud computing, which is the delivery of computing services over the internet.

The Fidelity Digital Health ETF invests in companies providing health care records management, connect health care devices, surgical robotics, telemedicine and other technology-enabled health care products and services.

The Fidelity Electric Vehicles and Future Transportation ETF invests in companies engaged in the production of electric or autonomous vehicles and their components, technology or energy systems and in companies involved in other initiatives to change the future of transportation.

With these latest launches, Fidelity has 46 ETFs with more than $30.6 billion in assets under management, and its platform offers investors and advisors access to more than 2,000 ETFs commission-free. As of July 31, Fidelity had $4.2 trillion in assets under management and $7 trillion in assets under administration.