Fidelity adds to smart beta range with promises of more launches

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Fidelity International has added two income products to its smart beta ETF range and promised further launches in the coming months.

The Fidelity Europe Quality Income and the Fidelity Emerging Markets Quality Income Ucits ETFs seek high quality dividend-paying companies to deliver yield in excess of the broader market market-cap weighted index.

“Smart beta strategies are growing in popularity as clients seek systematic exposure to an investment strategy or theme,” says head of ETFs Nick King.

“By combining Fidelity’s active investment expertise with the systematic aspects of passive investing, we believe we can offer a truly differentiated product aligned to client outcomes, such as income.”

The Europe fund has an OCF of 0.3 per cent, while the emerging markets fund has an OCF of 0.5 per cent and will be available on the London Stock Exchange and Deutsche Börse.

They will track in-house indices.

Fidelity will also launch new GBP, USD and EUR currency hedged share classes for the existing quality income ETF products.

“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,” says King.

“We plan to offer our next product range in the coming months as we look to grow our ETF capabilities.”   

The Fidelity Quality Income ETF range

Characteristic

Fidelity US Quality Income UCITS ETF

Fidelity Global Quality Income UCITS ETF

Fidelity Europe Quality Income UCITS ETF

Fidelity Emerging Markets Quality Income ETF

Primary ticker

FUSD / FUSA

FGQI

FEQD

FEMI

Index

Fidelity US Quality Income Index

Fidelity Global Quality Income Index

Fidelity Europe Quality Income Index

Fidelity Emerging Markets Quality Income Index

Base Currency

USD

USD

EUR

USD

Currency Hedged share class

GBP& Euro

GBP & Euro

Sterling

N/A

OCF

0.30%

0.40%

0.30%

0.50%