Fidelity launches two active ETFs that sell call options to generate additional income

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.