Fidelity launches two active ETFs that sell call options to generate additional income
5 OCT, 2026
By Joanna Piwko from RankiaPro Europe
Fidelity International has launched its new range Equity Enhanced Yield ETF, which aims to offer investors a differentiated income source without giving up exposure to equities. The range starts with the Fidelity Global Equity Enhanced Yield UCITS ETF and the Fidelity US Equity Enhanced Yield UCITS ETF.
According to Neil Davies, head of ETFs at Fidelity International, the range responds to the demand for alternative incomes from investors and expands an offer of active ETFs that already has 28 products and 16.8 billion dollars in assets under management, as of August 31, 2026.
Active equity with an overlaid options strategy
The new ETFs combine an actively managed equity portfolio, which incorporates the findings of Fidelity's global fundamental analysis platform in stock selection and portfolio construction, with a systematic strategy of selling call options on indices aimed at generating additional income.
Management is developed within a disciplined risk control framework, which also takes into account ESG factors when assessing investment risks and opportunities. Vincent Li, head of Derivatives at the firm, emphasizes the deliberately systematic nature of the approach.
Options can be a powerful tool to redefine the profitability profile of an equity investment. Our approach is deliberately systematic and uses a disciplined framework to select and implement index call options with the aim of consistently generating additional income, while at the same time maintaining significant participation in equity markets.
Vincent Li, Head of Derivatives, Fidelity International
Alternative incomes in a volatility environment
The manager frames the launch in a context in which volatility continues to weigh on investors. Davies highlights as a differential element the systematic access to Fidelity's bottom-up equity analysis, combined with a rule-based options strategy.
In a context where market volatility continues to pose difficulties for investors, we are seeing a growing demand for strategies capable of providing alternative sources of income and, at the same time, allowing them to maintain investment in equity markets.
What sets this range apart is that it offers investors access to Fidelity's bottom-up equity analysis in a systematic way. At the same time, a disciplined and rule-based options strategy aims to provide an additional source of income, while option premiums also help to cushion some of the impact of market downturns.
Neil Davies, Head of ETFs, Fidelity International
The launch comes a few weeks after the manager added the Fidelity US Fundamental Large Cap Growth UCITS ETF to its active ETF range, focused on large-cap US growth equity.
Features and trading schedule
Both ETFs are trading from today on Xetra (Germany) and Borsa Italiana, and will do so on the London Stock Exchange from October 5th. Each fund has 5 million dollars of initial capital contributed by Susquehanna, an authorized market participant.
| Ticker | ETF | ISIN | Current expenses | Benchmark index |
|---|---|---|---|---|
| FGLY | Fidelity Global Equity Enhanced Yield UCITS ETF Income USD Shares | IE000R0M7C70 | 0,35% | MSCI World |
| FUSY | Fidelity US Equity Enhanced Yield UCITS ETF Income USD Shares | IE0005C9DSV5 | 0,35% | MSCI USA |
