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The insiders' edge for 40 Act industry executives!
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an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
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Monday, February 12, 2024 The Boston Behemoth Expands to 66 ETFs and Counting The team at the Boston Behemoth is preparing to expand their ETF lineup to 66 funds and counting. This morning, Greg Friedman, head of ETF management and strategy at Fidelity Investments [profile], revealed the fund firm's plans to launch two more ETFs later this month while transforming three existing ETFs. Those transforming ETFs and one of those new ETFs will also form a new Fidelity ETF suite. The launches and transformations are all scheduled for February 26. The two new ETFs will be the Fidelity Fundamental Large Cap Value ETF (FFLV on the Cboe BZX) and the Fidelity Low Duration Bond ETF (FLDB on the Nasdaq). FLDB will be a series of Fidelity Merrimack Street Trust, with an expense ratio of 20 basis points, and the fund's PM team will include: David DeBlase, Gob Galusza, and Julian Potenza. FFLV will be a series of Fidelity Covington Trust, with an expense ratio of 38bps, and the fund's PM team will include Tim Gannon, Tom Hense, and Michael Kim. The three transforming funds are the Fidelity Growth Opportunities ETF (FGRO), the Fidelity New Millennium ETF (FMIL), and the Fidelity Small-Mid Cap Opportunities ETF (FSMO), and they had $489 million in combined AUM as of January 30. FSMO will become the Fidelity Fundamental Small-Mid Cap ETF (FFSM), FMIL will become the Fidelity Fundamental Large Cap Core ETF (FFLC), and FGRO will become the Fidelity Fundamental Large Cap Growth ETF (FFLG). Fidelity Management & Research Company LLC (FMR) serves as investment advisor for the transforming ETFs and will do so for the new ETFs, too. The five funds' subadvisors include: FMR Investment Management (UK) Limited (FMR UK), Fidelity Management & Research (Hong Kong) Limited (FMR H.K.), and Fidelity Management & Research (Japan) Limited (FMR Japan). Together, FFLV, FFLG, FFLC, and FFSM will become Fidelity's new Fundamental ETF equity suite. Like FFLV, the transforming ETFs list on the Cboe BZX and are series of Fidelity Covington Trust. FMIL's inception date was June 2, 2020. When transforming to FFLC, its 59bps expense ratio will drop to 38bps. Camille Carlstrom, Tim Cannon, and Kim will PM the transformed fund, succeeding Andy Browder and Daniel Sherwood. FGRO's inception date was February 2, 2021. When transforming to FFLG, its 59bps expense ratio will also drop to 38bps. Risteard Hogan, Gannon, and Kim will PM the transform fund, which is currently run by Kim and Kyle Weaver. FSMO's inception date was also February 2, 2021. When transforming to FFSM, its 60bps expense ratio will drop to 43bps. Michelle Hoerber and Gannon, the fund's current PMs, will be joined by Hense. "This launch builds on our legacy of active management through the ETF wrapper, as we continue to leverage both our fundamental approach along with quantitative construction techniques," Friedman states, adding that the new and transforming funds are "designed to serve as options for [customers'] portfolios' core positions." The five funds' other service providers include: Fidelity Distributors Company LLC (FDC) as distributor; Fidelity Service Company, Inc. (FSC) as service agent; PricewaterhouseCoopers LLP as independent accounting firm; and State Street Bank and Trust Company as custodian, dividend and disbursing agent, and transfer agent. Printed from: MFWire.com/story.asp?s=67038 Copyright 2024, InvestmentWires, Inc. All Rights Reserved |