New Listing

Fidelity launches three active ESG ETFs

Tom Eckett

Nick King Robeco

Fidelity International has expanded its ETF range with the launch of three actively-managed environmental, social and governance (ESG) products.

The Fidelity Sustainable Research Enhanced US Equity (FUSR), the Fidelity Sustainable Research Enhanced Global Equity (FGLR) and the Fidelity Sustainable Research Enhanced Europe Equity (FEUR) ETFs are listed on the London Stock Exchange (LSE) and Xetra with ongoing charges figures (OCFs) ranging between 0.30% and 0.35%.

Rebalanced quarterly, the three ETFs offer exposure to global, the US and European stocks while employing an ESG overlay.

To be included in the ETFs, companies must exhibit a positive fundamental outlook and strong sustainability credentials based on the firm’s Sustainable Ratings.

The portfolios typically consist of 250 to 500 stocks depending on the geographical region.

Nick King (pictured), head of ETFs at Fidelity International, commented: “Incorporating sustainable investing principles is a key priority for many of our clients.

“These new ETFs provide an enhanced beta exposure by leveraging both our proprietary ESG ratings and our fundamental research insights to select and weight securities, while seeking to capture the characteristics of the broader market.”

Jenn-Hui Tan, global head of stewardship and sustainable investing at Fidelity International, added: “Sustainable investing has proven to be one of the most significant shifts in asset management in a generation, heightened by increasing evidence that ESG investing can enhance financial returns.

“These new ETFs represent a key development in our capabilities by offering investors an enhanced ESG profile and access to Fidelity’s high-conviction analyst views.”

ETF Insight: ESG ETFs score major victory during coronavirus turmoil

The launches represent a move away from Fidelity's current ETF range which consists of a suite of smart beta products with quality tilts.

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