Fidelity International has added two US products to its high-conviction Fundamental Equity ETF range in Europe.
The Fidelity US Fundamental Large Cap Core UCITS ETF and Fidelity US Fundamental Small-Mid Cap UCITS ETF have been launched in response to client demand, Fidelity said.
The ETFs, which are sub-advised by US-based Fidelity Investments, are now available to Fidelity International clients through the Irish UCITS ETF range.
By adopting consistent and repeatable processes, the systematic active strategies are designed to combine the highest-conviction investment ideas from multiple Fidelity Investments portfolio managers into single strategies, the group said.
The Fidelity US Fundamental Small-Mid Cap UCITS ETF is the first Irish-domiciled UCITS ETF in Europe to employ the principles-based semi-transparent structure recently approved by the Central Bank of Ireland.
The ETF targets long-term growth by investing in US small and mid caps, while the Fidelity Fundamental Large Cap Core UCITS ETF seeks long-term capital growth by investing in US large caps.
Neil Davies, Fidelity International’s head of ETF product and capital markets for Europe and Asia Pacific, said: “In Europe, the initial wave of active ETFs took the form of benchmark-aware enhanced strategies, but investors are now looking to complement that with higher-conviction strategies.
“This launch seeks to meet this demand by leveraging proprietary Fidelity Investments’ research through an ETF wrapper. We believe higher-conviction ETFs have the potential to drive the next phase of growth in the European ETF market.”
Both ETFs listed with a EUR trading line on Xetra today (3 September), with further USD and GBP listings on the London Stock Exchange set for 4 September. Additional SIX and Borsa Italiana listings are set to follow.
