Fidelity International’s first ETFs combine active investment expertise with systematic aspects of passive investing…
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Nick King, Head of ETFs at Fidelity International
Initial product launches designed to meet investor demand for income
Fidelity International is set to enhance its range of investment solutions on offer to clients with the launch of two income-focused smart beta ETFs.
Combining Fidelity’s active investment expertise with the systematic aspects of passive investing, the funds are designed to meet investor demand for income.
Fidelity Global Quality Income UCITS ETF and Fidelity US Quality Income UCITS ETF provide exposure to high quality companies that aim to pay attractive dividends with the objective of delivering a yield in excess of the broader market* whilst, at the same time, carefully managing risk.
This is based on the philosophy that higher quality companies with stable earnings and cash flows have a better opportunity to outperform over time.
Risk will be carefully managed by minimising relative sector and country exposures and security specific positions.
Nick King, Head of ETFs at Fidelity International, comments: “Fidelity International is focused on providing world class investment solutions. Demand for Smart Beta strategies has been growing in recent years and is expected to continue to accelerate as investors look for competitively priced, differentiated products which provide a particular investment outcome. This is an area we believe our proven research capabilities and expertise can add value and increased choice for our clients.
“Our first smart beta ETFs will track Fidelity-branded indices which leverage our experience in security analysis and portfolio construction. By combining our active investment expertise with the systematic aspects of passive investing, we believe we can offer a truly differentiated product.”
Competitively priced with an OCF of 0.3% for the US fund and 0.4% for the global fund, the ETFs will commence trading on Monday, 3 April on the London Stock Exchange and Deutsche Boerse.
* Fidelity Global Quality Income UCITS ETF – MSCI World. Fidelity US Quality Income UCITS ETF – S&P 500.