Fidelity International has launched the Fidelity US Fundamental Large Cap Growth UCITS ETF (FFLG) due to “growing client demand” for active ETFs, according to the firm.
The launch expands its Fundamental Equity ETF range to three products. FFLG will sit alongside the Fidelity US Fundamental Large Cap Core UCITS ETF (FFLC) and Fidelity US Fundamental Small-Mid Cap UCITS ETF (FFSM), both of which floated on the market in September last year.
The latest strategy launch adopts active management and bottom-up research from the ETF’s sub-adviser Fidelity Investments, a separate US-based company. It will also use a systematic process spanning the US large-cap, growth-focused equity market.
According to Fidelity International, Europe’s active ETF market has nearly quadrupled over three years, to $142.6bn in assets. However, active strategies still account for only 3.6% of the overall European ETF market.
Neil Davies, head of ETF product and capital markets for Europe and Asia Pacific at Fidelity International, said: “Active ETFs are one of the fastest-growing areas of the European investment market, and we see significant opportunity ahead as more investors embrace the flexibility, transparency and tradability of the ETF structure.
“Our focus is on capturing that growth by bringing the best of Fidelity’s capabilities to our clients through new and differentiated ETFs.
“The launch of the Fidelity US Fundamental Large Cap Growth ETF builds on the strong client response to our Fundamental Equity ETF range and is another step in broadening our active ETF offering to meet evolving client needs.”
