Fidelity readies Smart Beta ETF expansion

Fidelity International has announced that it is set to expand its Smart Beta ETF range with the launch two new income-focused funds and a restructuring of its share classes on a number of other ETFs.

The two new funds, the Fidelity Europe Quality Income UCITS ETF and the Fidelity Emerging Markets Quality Income UCITS ETF are set for roll out on November 1, the company said in a statement announcing the changes.

Both ETFs seek to provide exposure to high quality dividend paying companies and will track Fidelity-branded indices consistent with the the company’s existing Quality Income ETFs range.

The ETFs are priced with an OCF of 0.3% for the Europe fund and 0.5% for the Emerging Markets fund and will commence trading on 1 November on the London Stock Exchange and Deutsche Börse.

Following this, Fidelity said that it will also launch new sterling, US dollar and and euro currency hedged share classes for the existing Fidelity US Quality Income UCITS ETF, Fidelity Global Quality Income UCITS ETF and the new Fidelity Europe Quality Income UCITS ETF.

New launches

Nick King, head of ETFs at Fidelity International said that the company plans to offer its next product range in the coming months as he looks to “grow our ETF capabilities.”

“Smart beta strategies are growing in popularity as clients seek systematic exposure to an investment strategy or theme,” he said.

“After the successful launch of our first smart beta funds in April, I’m pleased we can now offer a full range of Income ETFs including currency hedged share classes to allow clients to accurately implement their regional views.”

The Fidelity Quality Income ETF range consists of:

CharacteristicFidelity US Quality Income UCITS ETFFidelity Global Quality Income UCITS ETFFidelity Europe Quality Income UCITS ETFFidelity Emerging Markets Quality Income ETF
Primary tickerFUSD / FUSAFGQIFEQDFEMI
IndexFidelity US Quality Income IndexFidelity Global Quality Income IndexFidelity Europe Quality Income IndexFidelity Emerging Markets Quality Income Index
Base CurrencyUSDUSDEURUSD
Currency Hedged share classGBP& EuroGBP & EuroSterlingN/A
OCF0.30%0.40%0.30%0.50%
ABOUT THE AUTHOR
Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

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