Fidelity Investments announced the launch of two new thematic exchange-traded funds — the Fidelity Crypto Industry and Digital Payments ETF (FDIG) and the Fidelity Metaverse ETF (FMET) — and two new fixed income sustainable ETFs — the Fidelity Sustainable Core Plus Bond ETF (FSBD) and the Fidelity Sustainable Low Duration Bond ETF (FSLD). These funds will be available to purchase on or about April 21.
The two new thematic ETFs expand Fidelity’s line-up into the crypto and metaverse industries. FDIG, which will not offer direct exposure to cryptocurrency, delivers the opportunity to invest in companies that support the broader digital assets ecosystem, including those involved in crypto mining and trading, blockchain technology, and digital payments processing.
FDIG will normally invest at least 80% of assets in equity securities included in the Fidelity Crypto Industry and Digital Payments Index℠ and in depositary receipts representing securities included in the index. The Fidelity Crypto Industry and Digital Payments Index℠ is designed to reflect the performance of a global universe of companies engaged in activities related to cryptocurrency, related blockchain technology, and digital payments processing.
FMET can help investors invest in the evolution and future of the internet by providing access to companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the metaverse, such as computing hardware and components, digital infrastructure, design and engineering software, gaming technology and software, web development and content services, and smartphone and wearable technology.
FMET will normally invest at least 80% of assets in securities included in the Fidelity Metaverse Index℠ and in depositary receipts representing securities included in the index. “Metaverse” is a term used to describe a future state of the internet characterized by a network of both augmented reality and virtual worlds that can be experienced persistently and in a shared environment by large numbers of users. The Fidelity Metaverse Index℠ is designed to reflect the performance of a global universe of companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the metaverse.
“Leveraging Fidelity’s decades of investment expertise, we are focused on growing our broad product lineup with innovative strategies that offer choice, value and new opportunities to investors,” said Greg Friedman, Fidelity’s head of ETF management and strategy, in a news release. “We continue to see demand, particularly from young investors, for access to the rapidly growing industries in the digital ecosystem, and these two thematic ETFs offer investors exposure in a familiar investment vehicle.”
The two new passively managed ETFs will have expense ratios of 0.39%. They are self-indexed ETFs, using Fidelity’s indexes, constructed by Fidelity’s quantitative investing team, to identify equity securities that offer exposure to these industries.
Fidelity’s new sustainable fixed income ETFs will use Fidelity’s proprietary ESG ratings frameworks in addition to third-party ESG ratings to evaluate an issuer’s sustainable business practices. The funds will have retail and advisor share classes.
FSBD will normally invest at least 80% of assets in debt securities of all types that Fidelity Management & Research Co. believes have positive environmental, social, and governance (ESG) benefits and will repurchase agreements for those securities.
FSLD will normally invest at least 80% of assets in investment-grade debt securities (those of medium and high quality) of all types that FMR believes have positive ESG benefits and repurchase agreements for those securities.
“Fidelity continues to grow its sustainable investing lineup, with a range of equity, fixed income, and asset allocation strategies, as investors continue to seek opportunities to invest alongside their values and influence positive change in the world,” said Pam Holding, co-head of equity and head of sustainable investing at Fidelity Investments. “With the addition of these new sustainable fixed income strategies, our clients now have access to building blocks across multiple asset classes to help address their investment goals and priorities.”
With this launch, Fidelity will offer 51 ETFs with more than $33 billion in assets under management.
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