Fidelity Plans US Sector ETFs

October 23, 2013

Fidelity Investments put 10 index-based sector ETFs into registration in late July—the first sign that the partnership it formed with BlackRock covering indexed and indexed sector strategies is taking shape.

Any comprehensive family of Fidelity sector funds will clearly compete head-to-head with the industry-leading "Select Sector SPDR Fund" family from State Street Global Advisors. But the plan also begs the question of what BlackRock's iShares unit might do with its own sector ETFs to the extent that promoting its own products might undermine one of the cornerstones of its partnership with Fidelity.

The 10 proposed Fidelity funds, which will be organized around MSCI indexes, cover each of the major sectors: consumer discretionary, utilities, consumer staples, energy, financials, health care, industrials, information technology, materials and telecommunications.

The Fidelity filing included neither tickers nor proposed annual expense ratios.

 

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