Fidelity Investments announced last Thursday that it has expanded its investing platform for investors and financial advisers to include the company’s first suite of passive sector exchange traded funds.
The company said the 10 new passive sector ETFs will be the lowest-cost passively managed ETFs in the industry, with expense ratios totaling 0.12 percent. Investors and registered investment advisers can purchase the ETFs through a Fidelity brokerage platform.
Fidelity offers 44 actively managed sector mutual funds, and the company has $1.9 trillion in managed assets.
“Since the financial crisis five years ago, investors and advisers have told us that they are looking for additional ways to diversify their portfolios and get exposure to specific industries outside of the typical cap-weighted or style specific options such as large or small cap, or growth and value,” Anthony Rochte, the president of SelectCo, Fidelity’s dedicated sector investing division, said. “Our new passive sector ETFs can provide for that diversification, serving as building blocks to help investors and advisers find new ways of generating alpha through asset allocation and better manage portfolio risk.”
The company has also developed sector-specific micro sites as part of an effort to help advisers learn about sector investing.
“It’s not enough to just provide new products today,” Ram Subramaniam, the president of Fidelity Brokerage, said. “To help our 10 million brokerage customers better understand sectors and make more informed investment decisions, we knew we needed to develop a world-class sector platform that brings together investment insights, research, education and highly customizable screeners for finding sector stocks, ETFs and mutual funds.”
The 10 new passively managed sector ETFs include Fidelity MSCI Industrials, Health Care, Financials, Information Technology, Telecommunication Services, Consumer Discretionary, Consumer Staples, Energy, Materials and Utilities.