Fidelity Unveils Euro ‘Quality Value' ETF Range

Fidelity International has unveiled its new "quality value" ETF range with a double launch, ETF Stream can reveal.

The Fidelity US Quality Value UCITS ETF (FUSV) and the Fidelity Global Quality Value UCITS ETF (FGLV) have been introduced with total expense ratios (TERs) of 0.25% and 0.40%, respectively, although fees will be discounted for the first six months—to 0.2% and 0.3%.

The new funds listed on Deutsche Boerse today and begin trading on the London Stock Exchange tomorrow, with listings on the SIX Swiss Exchange and Borsa Italiana to follow.

FUSV and FGLV will track the Fidelity U.S. Quality Value and the Fidelity Global Quality Value indices, respectively. The family seeks to capture the performance of large- and mid-cap companies with attractive valuations, strong ESG characteristics, and certain "quality" traits, while controlling for sector and country exposures.

Fidelity Aims to Refine Meaning of Value With New ETFs

Fidelity says the approach seeks to “improve the definition of value” by accounting for various intangible assets such as research and development, as well as “avoid value traps” by focusing on quality companies.

The ETFs are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Alastair Baillie Strong, head of ETFs at Fidelity International, commented, “The foundation of our ETFs is their ability to leverage our research and quantitative capabilities to provide differentiated exposures, through enhanced index or active ETFs. The new Quality Value ETFs can help clients build a diversified allocation with quality names while also investing in attractively valued companies.”

The range follows from its popular "quality income" range which houses $2.5 billion in assets under management, according to figures from the firm. The range constitutes almost one-third of its European ETF franchise by AUM.

Fidelity International recently expanded its active ETF range with two Paris-aligned fixed income ETFs.