Today Fidelity Investments rolled out two international smart-beta ETFs. The Fidelity International High Dividend ETF (FIDI) and Fidelity International Value Factor ETF (FIVA) both track in-house indexes covering large- and midcap developed-market non-U.S. stocks.
FIDI and FIVA come with expense ratios of 0.39% and list on the NYSE Arca.
While FIDI targets high-dividend-paying stocks, FIVA invests in those with attractive valuations. Interestingly, the prospectus includes securities lending to earn income as part of the principal investment strategies for both funds.
The documents did not provide a great deal of detail about the methodologies of the funds’ underlying indexes.
The largest developed-market ex-U.S. dividend ETF is the iShares International Select Dividend ETF (IDV), which has $5 billion in assets under management and comes with an expense ratio of 0.50%. Meanwhile, the iShares MSCI EAFE Value ETF (EFV) has roughly $6.7 billion in assets and comes with an expense ratio of 0.40%; however, the iShares Edge MSCI Intl Value Factor ETF (IVLU) has $144.2 million in assets and comes with an expense ratio of just 0.30%.
Prudential Plans Ultra Short Bond ETF
A recent filing from Prudential, or PGIM ETF Trust, to be specific, outlines the insurance and financial giant’s plans for an actively managed short-term bond ETF. The actively managed PGIM Ultra Short Bond ETF will invest mainly in fixed-income securities with final or remaining maturities of less than three years and aim for an effective duration of one year or less.
The proposed ETF will be able to invest in a wide range of debt denominated in U.S. dollars, including U.S. government debt, commercial paper, money market instruments, asset-backed securities and other types of fixed income.
Insurance companies have been moving into the ETF space over the past few years, with Nationwide, USAA and Transamerica among the most recent entrants. However, Prudential is one of the largest insurers in the world, ranking No. 6 globally in 2017, according to Forbes.
The filing did not include a ticker or expense ratio, but it did indicate the fund will list on the NYSE Arca.
Contact Heather Bell at [email protected]