Fidelity International is launching two smart-beta exchange traded funds (ETFs) for the first time in an attempt to meet the growing investor demand for these products.
The asset manager already offers 14 index trackers, but the latest move will see it venturing into the ETF space for the first time.
The firm, which has some £224bn in assets under management, is launching two quality income smart-beta ETFs on the London Stock Exchange and Deutsche Boerse today.
The funds will be named the Fidelity US Quality Income ETF and the Global Quality Income ETF and will carry an annual fund charge of 0.30% and 0.40%, respectively.
They will invest in UK and global stocks, offering exposure to high quality companies that aim to pay attractive dividends with the objective of delivering a yield in excess of the broader market, while at the same time carefully managing risk.
Both products will tracks proprietary indices developed and branded by Fidelity, with the firm planning to continue building its smart-beta offering over the next 18 months.
Nick King, Head of ETFs, said: "Demand for smart-beta strategies has been growing in recent years and is expected to continue to accelerate as investors look for competitively priced, differentiated products which provide a particular investment outcome.
"This is an area we believe our proven research capabilities and expertise can add value and increased choice for our clients.
"Our first smart-beta ETFs will track Fidelity-branded indices which leverage our experience in security analysis and portfolio construction. By combining our active investment expertise with the systematic aspects of passive investing, we believe we can offer a truly differentiated product."
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