Fidelity has introduced a comprehensive suite of six new exchange-traded funds (ETFs) and simultaneously made significant reductions in management fees for nearly a third of its existing ETF lineup. This move marks the initiation of what industry analysts anticipate to be a robust week for the debut of various ETFs.
In the current year alone, asset managers have already launched a notable 419 ETFs, according to data from Morningstar Direct. This influx of new ETFs in 2023 is inching closer to surpassing the record set in 2021 when 475 new ETFs were introduced to the market. The ongoing week is anticipated to witness the introduction of at least a dozen more products.
Ark Invest and 21Shares AG are set to launch a set of five actively-managed ETFs linked to bitcoin and ethereum futures, along with blockchain technology on the upcoming Tuesday and Wednesday. This strategic move is expected to expand Ark’s ETF lineup from eight to a total of 15 offerings.
The trend of rolling out multiple ETFs simultaneously has become increasingly common, as noted by John Hooson, the managing director of global ETF product at Brown Brothers Harriman. Hooson pointed out that firms like ARK often employ this approach to target various facets of the same strategy or market segment.
Fidelity’s latest ETF conversions encompass funds focusing on large-cap growth, value, and core portfolios, as well as mid-cap, small-cap, and international stocks. The fee structure for Fidelity’s new offerings ranges from 18 to 28 basis points, a substantial reduction compared to the average fee of approximately 63 basis points for actively managed ETFs, as highlighted by Bryan Armour, a mutual fund analyst at Morningstar. Armour emphasized that these fee reductions are indeed significant, resulting in very low new fees for the Fidelity products.
