Fidelity ETFs Quick to $1 Billion in Assets
Fidelity’s 10 sector exchange traded funds, introduced by the Massachusetts-based mutual fund giant last October, have amassed a combined $1 billion in assets under management.
“Assets in these exchange-traded funds have tripled from the start of 2014 and nine of the 10 Fidelity sector ETFs have more than doubled in size this year, reports Eric Balchunas for Bloomberg.
The outlier is the Fidelity MSCI Consumer Staples Index ETF (FSTA) , which had $31.4 million in assets under management as of May 31.
Soaring energy stocks recently lifted the Fidelity MSCI Energy Index ETF (FENY) to $100 million in assets under management. FENY is one of four Fidelity sector ETFs that as of the end of the May had over $100 million in assets under management. [Energy Rally Lifts Another Fidelity ETF Over $100M in AUM]
The other Fidelity ETFs with over $100 million in assets as of May 31 are the Fidelity MSCI Information Technology Index ETF (FTEC) , the Fidelity MSCI Health Care Index ETF (FHLC) and the Fidelity MSCI Financials Index ETF (FNCL) – also have more than $100 million in assets. The Fidelity MSCI Industrials Index ETF (FIDU) could be the next Fidelity ETF to join the $100 million club as it had $96.6 million at the end of last month.
While Fidelity was late to the ETF game and faces intense competition for sector ETF dominance, from State Street (STT) and Vanguard in particular, the Fidelity sector funds have some advantages. One of the most noticeable of those advantages is the 0.12% across the board annual expense ratio that makes Fidelity’s the least expensive sector ETFs on the market.
“A deep bench of holdings is another positive for Fidelity’s ETFs. Like those of Vanguard, Fidelity’s ETFs hold stakes in many more companies than you’ll find in the average sector ETF,” writes Balchunas, noting that FENY holds 166 stocks compared to the 164 found in the Vanguard Energy ETF (VDE) .
Fidelity clients receive added savings because they can trade the 10 sector ETFs commission-free. The company also offers 65 iShares ETFs on a commission-free basis. [BlackRock, Fidelity Form ETF Partnership]
Fidelity MSCI Health Care Index ETF
ETF Trends editorial team contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
