Fidelity has launched two fixed income ETFs which invest primarily in global corporate debt securities and aim to align with the Paris Agreement carbon emission standards.
The duo of ETFs, named the Fidelity UCITS II ICAV – Fidelity Sustainable EUR High Yield Bond Paris-Aligned Multifactor UCITS ETF and Fidelity UCITS II ICAV – Fidelity Sustainable USD High Yield Paris-Aligned Multifactor UCITS ETF, are classified as SFDR Article 9. Both were listed on Xetra today (23 October), with the London Stock Exchange to follow.
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The ETFs will search for high-yielding, sub-investment grade securities, using Fidelity’s “proprietary multifactor model”, which uses quantitative factors to invest. Both have a total expense ratio of 0.3%.
Alastair Baillie Strong, head of ETFs at Fidelity International, said: “By leveraging Fidelity’s extensive research capabilities and proprietary investment insights, we can offer our clients access to a range of uniquely positioned active ETFs that deliver enhanced exposures versus pure index trackers, at an attractive price point.
“Since launch in 2021, our Sustainable ETFs have proved popular with clients, growing to over $5.7bn assets under management across 13 different active strategies today.”
