Fidelity International launches two new sustainable ETFs to respond to the growth of the European market
28 OCT, 2024
The European active ETF market is experiencing a period of extraordinary growth, with assets under management increasing by over 50% since the beginning of the year, reaching nearly 50 billion dollars. This positive trend reflects the growing interest from investors in financial instruments that not only promise returns, but also a positive impact on the environment. In response to this demand, Fidelity International has announced the launch of two new fixed income ETFs, thus expanding its range of active sustainable ETFs.
Thanks to Fidelity's extensive research capabilities and proprietary investment insights, we are able to offer our customers a uniquely positioned range of active ETFs, with interesting exposures compared to pure index trackers, at an interesting cost. Since their launch in 2021, our sustainable ETFs have proven very popular with customers, reaching over 5.7 billion dollars in assets under management in 13 different active strategies today.
Alastair Baillie Strong, Head of ETFs at Fidelity International
Details on Fidelity's new ETFs
The new funds, the Fidelity UCITS II ICAV - Fidelity Sustainable EUR High Yield Bond Paris-Aligned Multifactor UCITS ETF and the Fidelity UCITS II ICAV - Fidelity Sustainable USD High Yield Paris-Aligned Multifactor UCITS ETF, have recently been listed on Xetra, the Frankfurt listing, and will soon also be available on the London Stock Exchange, on SIX and on Borsa Italiana. These ETFs join the Fidelity UCITS II ICAV - Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF, launched in November 2022, which has already raised 800 million dollars.
Thanks to a combination of quantitative, fundamental and sustainability research, the funds primarily invest in global issuers' high-yield and sub-investment grade corporate debt. The goal is to generate income and capital growth, while also aligning with the long-term objectives of the Paris Agreement on global warming. Fidelity has designed the funds to limit exposure to carbon emissions in their respective portfolios.
The funds will be built and rebalanced using Fidelity's proprietary multifactorial model, which is based on its in-depth quantitative research on fixed income. This approach aims to generate a systematic alpha during market cycles, while maintaining the fundamental characteristics of the asset class. The model is designed to generate returns through investments based on quantitative signals, identifying issuers that could outperform, strictly taking into account transaction costs.
