“In addition to smaller expense ratios, we think Fidelity has an advantage over other ETF providers withtheir sector products, as they have also added sector-based education for investors on their self-directed and advisor sites that taps into the analytical expertise of Fidelity’s asset management arm, which offers 44 sector and industry specific mutual funds, along with third-party research,” said the research firm.
S&P Capital IQ did not issue ratings on the new Fidelity ETFs, but the firm has marketweight ratings on the iShares U.S. Consumer Services ETF (NYSEArca: IYC) and the Vanguard Consumer Discretionary ETF (NYSEArca: VCR).
“While expense ratios are important for investors to consider, we still think State Street’s Consumer Discretionary Sector SPDR (NYSEArca: XLY) will remain the industry leader in assets for years to come as it offers significant liquidity and typically trades at an extremely low bid/ask spread of $0.01, compared to similar sector products. Time will tell if Fidelity can match that,” said S&P Capital IQ.
The research firm has an overweight rating on XLY.
Full list of Fidelity sector ETFs
