Finance

Fidelity launches slew of new ETFs, slashes fees


Susan McGee

(Reuters) – Fidelity launched six new exchange-traded funds (ETFs) on Monday and announced a sharp cut in management fees for nearly a third of its total ETF lineup, kicking off what analysts expect to be a year of ETF debuts. Another strong week.

According to data from Morningstar Direct, asset managers have launched 419 ETFs so far this year, moving one step closer to breaking the record of 475 new ETFs in 2021 in 2023.

At least a dozen new products are expected to be launched this week.

Among them, Ark Invest and 21Shares AG will launch five actively managed ETFs related to Bitcoin, Ethereum futures and blockchain technology on Tuesday and Wednesday. This move will increase Ark’s ETF lineup from 8 to 15.

Clustering multiple ETFs has become an increasingly common strategy, said John Hooson, director of global ETF products at Brown Brothers Harriman.

“Sometimes, like Ark, it’s a set of products targeting different parts of the same strategy or market,” he said.

Fidelity’s ETF switch includes funds focused on large-cap growth, value and core portfolios, as well as mid-cap small-cap and international stocks.

Morningstar mutual fund analyst Bryan Armor said fees on Fidelity products range from 18 to 28 basis points, while the average fee for actively managed ETFs is about 63 basis points.

“These cuts are very, very large and the new fees are very low,” Armor said.

(Reporting by Suzanne McGee; Editing by Ira Iosebashvili and Deepa Babington)



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