Cboe Global Enlists Three ETFs From Fidelity for Trading
Cboe Global Markets, Inc. CBOE has listed three actively managed, semi-transparent exchange traded funds (ETFs) from Fidelity Investments to be traded on its CBOE BZX Exchange, Inc.
Founded in 1946, Boston, MA-based Fidelity Investments offers investment management, retirement planning, portfolio guidance, brokerage and many other financial products. It recently launched three new ETFs, which are available commission-free to individual investors and financial advisors through Fidelity’s online brokerage platforms. They are Fidelity Blue Chip Value ETF (FBCV), Fidelity Blue Chip Growth ETF (FBCG) and Fidelity New Millennium ETF (FMIL).
Fidelity boasts the industry’s largest and most diversified financial services companies. It is a leading provider of ETFs with more than $440 billion in ETF client assets.
The active equity ETFs employ a tracking basket methodology, which offers the benefits of the ETF structure, provides information to market participants to promote efficient trading of shares throughout the day and preserves the ability to add value through active management.
The introduction of these first proxy model semi-transparent ETFs has enabled CBOE to bolster its portfolio of actively managed, semi-transparent ETFs, which are listed on its exchange. The partnership with Fidelity Investments will boost the competence of CBOE and enable asset managers to take advantage of listings services, and help in new product development and launch. Also, it will augment its expertise in marketing and distribution.
This recent listing of ETFs follows the listing of American Century Focused Dynamic Growth ETF and American Century Focused Large Cap Value ETF on the Cboe BZX Exchange for trading in April. It indicates CBOE Global’s effort to pave the way for more semi-transparent ETFs in the future. The launch of those ETFs adds to Cboe’s track record of delivering products and services and advance innovation in the ETF industry.
By 2019, Cboe became the listing venue for more than 380 exchange-traded products (ETPs) from close to 50 unique issuers globally. Since its inception in 2014, Cboe's listings business has grown to capture nearly 15% of all U.S.-listed ETPs.
Shares of this Zacks Rank #2 (Buy) company have underperformed the industry in the past year. The stock has lost 11.3% against the industry’s increase of 8.9%. Nevertheless, diversified product portfolio and strong liquidity position should drive the stock going forward.
Other Stocks to Consider
Some other top-ranked stocks in the same space are MarketAxess Holdings MKTX, CME Group CME and Intercontinental Exchange ICE.
MarketAxess sports a Zacks Rank #1 (Strong Buy). It operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. The company delivered a positive surprise of 3.70% in the last reported quarter.
CME Group operates contract markets for the trading of futures and options on futures contracts worldwide. The company delivered a positive surprise of 4.48% in the last reported quarter. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intercontinental Exchange operates regulated exchanges, clearing houses and listings venues for commodity, financial, fixed income and equity markets in the United States, European Union and Canada. It surpassed estimates in each of the last four quarters, with the average positive surprise being 4.46%. It carries a Zacks Rank #2.
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Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
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