Fidelity Launches New Active ESG ETFs, Mutual Funds, “FSST” and “FDWM”
Today, Fidelity Investments added two new equity ETFs to its ESG product line, as well as two ESG equity mutual funds and an ESG bond mutual fund. The funds, which are available to investors from tomorrow, June 17, will use Fidelity’s semi-transparent active structure.
Both ETFs include the Fidelity Sustainability U.S. Equity ETF (FSST) and the Fidelity Women’s Leadership ETF (FDWM), which will follow strategies similar to those of two Fidelity equity mutual funds of the same name, one of which is also launching today.
FSST and FDWM will monitor high quality companies fighting climate change (either through company policy or through the products and services they offer); or that advance women’s leadership and development; or companies that have proven or improved their sustainability practices, depending on the press release announcing the launch.
This brings the total number of ETFs and ESG mutual funds offered by Fidelity to eleven.
“Investors are increasingly interested in aligning their values and priorities with their investment decisions. Fidelity’s new ESG mutual funds and ETFs offer these investors new ways to align their financial and personal goals, ”said Pam Holding, Co-Head of Equities and Head of Sustainable Investing at Fidelity Investments, in the press release. “Fidelity will continue to expand its sustainable investing solutions and resources to help our clients link their financial goals with positive results around the world. “
About FSST and FDWM
FSST will invest at least 80% of its assets in equities of US companies that have proven or improve their sustainability practices, based on Fidelity’s assessment of the ESG profiles of those companies. The launch is accompanied by a mutual fund with a similar name and investment objective.
Meanwhile, FDWM will invest at least 80% of its assets in stocks of companies that prioritize and advance women’s leadership and development.
Eligible companies include those that include at least one woman in the management team; those headed by a board of directors of which women represent at least one third of the members; or companies that Fidelity believes have policies designed to attract, retain and promote women in their workforce.
Fidelity already offers a mutual fund with a name and investment objective similar to FDWM, the Fidelity Women’s Leadership Fund (FWOMX).
With these two launches, Fidelity now has nine ETFs in its product line using its semi-transparent active model, in addition to five fully transparent bond ETFs, 15 factor ETFs, 11 index-linked sector ETFs and the Fidelity Nasdaq Composite Index ETF (ONEQ).
Fidelity’s take on the semi-transparent active ETF structure uses a proprietary tracking basket methodology that masks a fund’s daily holdings, while allowing the flexibility and intraday trading of the ETF vehicle. The actual holdings of the funds are published monthly.
The Fidelity model has been approved by several historical asset managers, including Capital Group, Goldman Sachs Asset Management, Invesco, Hartford Funds, John Hancock Investment Management and Putnam Investments.
At the end of May, Fidelity had $ 10.8 trillion in assets under administration, including discretionary assets of $ 4.1 trillion.
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