An inevitable transfer of power at Fidelity Investments has all eyes on the mutual fund provider to see what the shift could mean for exchange traded funds (ETFs).
Edward "Ned" Johnson III, 77, has run the nation’s largest mutual fund company for three decades, and he can’t keep up the pace forever. Mark Jewell for the Associated Press reports that the only other shift in management was 61 years ago, when Ned took over for his father.
The noticeably quiet company hasn’t given a timeline for a change in leadership, and it is known that Ned will not step down until everything is set up perfectly. And whomever does gain the position may not have the same powers as Johnson. It is noted that his daughter Abigail Johnson, 46, may have the odds in her favor for the position, however, some question whether or not she wants it.
When the shift finally does come, will the new leadership be open to the newer and more innovative products on the market, or will they stick with the same old, same old? Will Fidelity ever have more than one ETF, the Fidelity Nasdaq Composite Index Tracking (ONEQ)?
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.