Fidelity's launch of an exchange-traded fund based on the Nasdaq Composite Index Wednesday is the start of a new product line at the firm. The Boston Behemoth intends the ETF to be the first in a number of ETF products.

The new ETF is being marketed under the name "OneQ" (Fidelity is also offering an open-end mutual fund based on the index).

"This is a significant milestone for us as it marks the first time Fidelity will sponsor and manage an ETF," said Sanjiv Mirchandani, Fidelity Investments' executive vice president of Brokerage and Asset Management Products. Mirchandani noted that ETFs have been among the fastest growing products in the financial services industry over the past few years and that Fidelity's brokerage customers have taken advantage of the variety of externally managed ETFs.

Robert Reynolds, vice chairman and chief operating officer at Fidelity told reporters at a press conference yesterday the fund giant is planning a family of ETFs as follow-ups to this initial product.

Jeff Carney, president of Fidelity's Personal Investments Unit, added that the firm is looking at managed ETFs as one way to break into the niche.  

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