Fidelity launches Fidelity Preferred Securities & Income ETF
Fidelity Investments has launched of a new active fixed income exchange-traded fund (ETF), Fidelity Preferred Securities & Income ETF, which is available for individual investors and financial advisers to purchase commission-free through Fidelity’s online brokerage platforms.
Fidelity Preferred Securities & Income ETF (FPFD) is competitively priced with a total expense ratio of 0.59 per cent. With this launch, Fidelity now manages 42 ETFs with more than USD29 billion in assets.
“Investors continue to look for a range of fixed income solutions across duration and credit spectrums, and we remain committed to using our significant global investment management capabilities and scale to offer choice and value in this space,” says Greg Friedman, Fidelity’s Head of ETF Management and Strategy.
The ETF is Fidelity’s first stand-alone preferred securities product and is managed by Fidelity veterans Adam Kramer and Brian Chang, leveraging their combined 15 years of experience managing preferred securities within several multi-asset class strategies. The portfolio managers rely primarily on fundamental research to identify preferred securities that may offer the best return potential within the portfolio’s investable universe. The team will also utilise Fidelity’s High Income and Alternatives Research Team. Preferred securities may offer attractive yields versus investment grade bonds or common stocks with steady total performance.
Fidelity Preferred Securities & Income ETF is now trading on Cboe BZX Exchange, Inc. In addition to today’s launch, Fidelity’s suite of active fixed income ETFs includes Fidelity Total Bond ETF (FBND), Fidelity Limited Term Bond ETF (FLTB), Fidelity Corporate Bond ETF (FCOR), Fidelity Investment Grade Bond ETF (FIGB) and Fidelity Investment Grade Securitized ETF (FSEC). Fidelity also offers two factor bond ETFs, Fidelity High Yield Factor ETF (FDHY) and Fidelity Low Duration Bond Factor ETF (FLDR).