Fidelity Investments®, a leading global asset manager and pioneer in sector investing, today announced its 10 passively managed sector exchange-traded funds (ETFs) have surpassed $1 billion in managed assets since trading began eight months ago.
“As investment advisors, we’re looking to provide our clients with solutions that help diversify portfolios and are cost-effective”
A significant portion of Fidelity’s asset growth occurred in the past three months with individuals and advisors investing more than $500 million in the ETFs. In addition, six of the 10 ETFs have each accumulated more than $100 million in assets under management, including the largest — Fidelity MSCI Health Care Index ETF (FHLC) — at $172 million.1
Fidelity’s U.S. sector stock ETFs, which continue to offer the industry’s lowest total expense ratio at 0.12 percenti, are available to individual investors and registered investment advisors (RIAs) to buy commission free online* through one of Fidelity’s brokerage platforms.
“As investment advisors, we’re looking to provide our clients with solutions that help diversify portfolios and are cost-effective,” said David Haviland, portfolio manager at Beaumont Capital Management. “Sector investing is an effective and targeted approach that we frequently use to gain exposure to specific segments of the economy – whether it is for growth or to manage portfolio risk. With Fidelity’s deep sector heritage and the low-cost sector ETFs, it was clear these solutions would deliver value to our clients.”
“Surpassing the $1 billion milestone in such a short period of time clearly demonstrates the growing demand for sector investments,” said Anthony Rochte, president of SelectCo, Fidelity’s dedicated sector investing division. “We expect interest in sector investing, whether through our ETFs or our 44 actively managed sector mutual funds, to continue as individual investors and advisors seek to diversify their portfolios and use sectors as building blocks to help generate potential alpha and manage portfolio risk.”
As part of its broader strategic relationship, Fidelity, which has $2 trillion in managed assets, uses BlackRock as the sub-advisor for its 10 passive sector ETFs, leveraging the firm’s passive investment management expertise and scale.
With more than 30 years of global sector investing experience, Fidelity also offers 44 actively managed sector mutual funds with $71 billion2 in assets, up nearly 39% from one year ago. This is the industry’s largest lineup of sector mutual funds.
Expanded Sector Investing Education and Tools
Fidelity also expanded its extensive suite of in-depth sector research and market commentary for investors and advisors on dedicated micro sites onfidelity.com and advisor.fidelity.com, with the launch of Fidelity’s Quarterly Sector Update. The new report leverages proprietary research from across Fidelity and provides investors a snapshot of the relative performance potential of the 10 market sectors based on five key factors: relative strength, momentum, relative valuations, fundamentals and business cycle. The Q2 2014 report identifies the technology, industrials and health care sectors as best positioned for investment opportunities.
In addition, Fidelity’s sector research team continues to provide specific analysis on the 10 major equity sectors through its 2014 annual investment outlookand “State of the Sector” series. The most recent papers include State of the Sector: Information Technology, State of the Sector: Telecommunications Services, State of the Sector: Consumer Staples, and State of the Sector: Consumer Discretionary.
“Fidelity’s strategy will continue to be about offering our millions of brokerage customers and thousands of advisor clients a comprehensive suite of investment products and solutions to help them meet their diverse investment needs,” said Rochte. “Our expansive sector capabilities span from the industry-leading sector line up of ETFs and actively managed mutual funds to Fidelity’s sector research and investing tools and are all at the core of helping advisors and individual investors leverage sectors in their portfolios.”
The following chart provides a complete list of Fidelity’s passively managed sector ETFs.
|Fidelity Passive Sector ETF
|Fidelity MSCI Consumer Discretionary Index ETF
MSCI USA IMI Consumer Discretionary Index
|Fidelity MSCI Consumer Staples Index ETFMSCI USA IMI Consumer Staples Index||FSTA||0.12%|
|Fidelity MSCI Energy Index ETFMSCI USA IMI Energy Index||FENY||0.12%|
|Fidelity MSCI Financials Index ETFMSCI USA IMI Financials Index||FNCL||0.12%|
|Fidelity MSCI Health Care Index ETFMSCI USA IMI Health Care Index||FHLC||0.12%|
|Fidelity MSCI Industrials Index ETFMSCI USA IMI Industrials Index||FIDU||0.12%|
|Fidelity MSCI Information Technology Index ETFMSCI USA IMI Information Technology Index||FTEC||0.12%|
|Fidelity MSCI Materials Index ETFMSCI USA IMI Materials Index||FMAT||0.12%|
|Fidelity MSCI Telecommunication Services Index ETFMSCI USA IMI Telecommunication Services 25/50 Index3||FCOM||0.12%|
|Fidelity MSCI Utilities Index ETFMSCI USA IMI Utilities Index||FUTY||0.12%|