Fidelity is converting six of its actively managed enhanced index funds into equity exchange-traded funds, effective Nov. 17, the company disclosed Wednesday in a filing with the Securities and Exchange Commission.
In a supplement to the company’s prospectus for the Fidelity Small Cap Enhanced Index Fund, the firm said it will be converted from a mutual fund to an ETF.
Fidelity says it believes the conversion will “provide multiple benefits for investors of the Fund, including lower expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency.”
After the reorganization is completed, the fund will be liquidated, according to the filing.
“Given the ETFs are not yet converted, we are not able to share details on expense ratios at this point,” a Fidelity spokesperson told ThinkAdvisor on Thursday.