Fidelity Debuts 3 Active ETFs

June 17, 2021

Fidelity rolled out three ETFs this week, all actively managed; however, two of them rely on Fidelity’s model for nontransparent actively managed ETFs. The new funds include the Fidelity Preferred Securities & Income ETF (FPFD), the Fidelity Sustainability U.S. Equity ETF (FSST) and the Fidelity Women’s Leadership ETF (FDWM).

All of the ETFs come with expense ratios of 0.59%. While FSST and FDWM list on the NYSE Arca, FPFD lists on Cboe Global Markets.

FPFD, which launched today, is also the only fully transparent ETF of the trio. It made its debut this morning and relies on fundamental research and an in-house research team to select preferred securities and other income-oriented securities for the portfolio. FPFD focuses on the investment-grade space from both foreign and domestic issuers, the prospectus says.

Meanwhile, FSST and FDWM both rely on Fidelity’s model for nontransparent active management and take an ESG angle. The funds launched Wednesday.

FSST uses Fidelity’s in-house ESG ratings system to evaluate a company’s sustainability, with a focus on social and environmental impact. FDWM takes a different angle, assessing companies based on how many women hold leadership positions within the firm and their policies around recruiting and supporting female employees, according to the prospectus.

Contact Heather Bell at [email protected]

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