Fidelity to Launch 2 Active ETFs

Fidelity Investments says it will launch two new active ETFs by Feb. 26 — the Fidelity Fundamental Large Cap Value ETF (FFLV) and Fidelity Low Duration Bond ETF (FLDB), with management fees of .38% and .20%, respectively. 

The fund giant also is planning the rollout of its Fundamental ETF equity suite this month with lower fees, new names and asset management tweaks to three existing funds: the Fidelity Growth Opportunities ETF (FGRO), Fidelity New Millennium ETF (FMIL) and Fidelity Small-Mid Cap Opportunities ETF (FSMO).

Management fees on two funds being updated — the Fidelity Fundamental Large Cap Growth ETF (FFLG), which replaces FGRO, and the Fidelity Fundamental Large Cap Core ETF (FFLC), which replaces FMIL — will each drop to .38% from .59%.

The Fidelity Fundamental Small-Mid Cap ETF (FFSM), replacing FSMO, will reduce its management fee to .43% from .60%.

“This launch builds on our legacy of active management through the ETF wrapper, as we continue to leverage both our fundamental approach along with quantitative construction techniques,” according to Greg Friedman, Fidelity’s head of ETF Management and Strategy.

The new active equity and active fixed income ETFs are designed as options for investors’ core portfolio positions, Friedman added.

Fidelity says its new low duration bond ETF “will seek to obtain a high level of current income consistent with preservation of capital by normally investing at least 80% of assets in investment-grade debt securities of all types and repurchase agreements for those securities.”

With the planned changes, Fidelity’s ETF lineup will expand to 66 products this month. The firm’s total assets under administration were $12.6 trillion as of Dec. 31.

Image: Shutterstock