Mutual fund giant Fidelity will bolster its footprint in the exchange traded products industry Thursday when the Massachusetts-based firm rolls out 10 sector ETFs.
Earlier this year, Fidelity filed for exemptive relief with the Securities and Exchange Commission to launch 10 U.S. sector-specific ETFs. BlackRock (NYSE: BLK), the largest U.S. asset manager, will be the sub-advisor for the planned Fidelity sector ETFs.
BlackRock is the parent company of iShares, the world’s largest ETF issuer. iShares has its own broad suite of sector ETFs, including the $1.6 billion iShares U.S. Energy ETF (NYSEArca: IYE) and the $1.3 billion iShares U.S. Financials ETF (NYSEArca: IYF). [Fidelity Files to Launch Sector ETFs]
Fidelity will introduce the following ETFs on Thursday:
- Fidelity MSCI Consumer Discretionary Index ETF (NYSEArca: FDIS) tries to reflect the performance of the MSCI USA IMI Consumer Discretionary Index.
- Fidelity MSCI Consumer Staples Index ETF (NYSEArca: FTSA) tries to reflect the performance of MSCI USA IMI Consumer Staples Index.
- Fidelity MSCI Energy Index ETF (NYSEArca: FENY) tries to reflect the performance of MSCI USA IMI Energy Index.
- Fidelity MSCI Financials Index ETF (NYSEArca: FNCL) tries to reflect the performance of MSCI USA IMI Financials Index.
- Fidelity MSCI Health Care Index ETF (NYSEArca: FHLC) tries to reflect the performance of MSCI USA IMI Health Care Index.
- Fidelity MSCI Industrials Index ETF (NYSEArca: FIDU) tries to reflect the performance of MSCI USA IMI Industrials Index.
- Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC) tries to reflect the performance of MSCI USA IMI Information Technology Index.
- Fidelity MSCI Materials Index ETF (NYSEArca: FMAT) tries to reflect the performance of MSCI USA IMI Materials Index.
- Fidelity MSCI Telecommunications Services Index ETF (NYSEArca: FCOM) tries to reflect the performance of MSCI USA IMI Telecommunications Services 25/50 Index.
- Fidelity MSCI Utilities Index ETF (NYSEArca: FUTY) tries to reflect the performance of MSCI USA IMI Utilities Index.
Fidelity currently manages one ETF, the Fidelity Nasdaq Composite Index (NasdaqGM: ONEQ).
Fidelity and iShares already have a partnership that includes the former offering some iShares ETFs to its clients on a commission-free basis. Earlier this year, the number of iShares ETFs available commission-free to Fidelity clients was more than doubled to 65. [Fidelity, iShares Deepen Ties]
Fidelity and iShares also partner on a managed accounts strategy where iShares ETFs are used as the underlying investments.
ETF Trends editorial team contributed to this post.
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