Fidelity has launched two new fixed income active exchange-traded funds (ETFs) to its sustainable active ETF range.
The Fidelity UCITS II ICAV - Fidelity Sustainable EUR High Yield Bond Paris-Aligned Multifactor UCITS ETF and Fidelity UCITS II ICAV - Fidelity Sustainable USD High Yield Paris-Aligned Multifactor UCITS ETF listed on ETF platform Xetra today, with listings on the London Stock Exchange, SIX and Borsa Italiana to follow.
The funds will invest in a portfolio primarily made up of high-yielding, sub-investment grade corporate debt securities of issuers globally, seeking income and capital growth while aiming to align with the Paris Agreement long-term global warming objectives by restricting carbon emission exposure in their respective portfolios.
The total expense ration for both funds is 0.3%
The funds are built and rebalanced using Fidelity’s proprietary multifactor model, analysing bonds using quantitative multi-factor signals to help identify issuers that outperform.
Both funds are classified as Article 9 under the Sustainable Finance Disclosure Regulation.
The ETFs are benchmarked against the Solactive Euro Corporate HY PAB and Solactive USD Corporate HY PAB Index respectively.
According to Fidelity, the ETF market continues to show strong growth, with assets under management up 50% year to date.
Since the launch of its sustainable range of ETFs in 2021, the range has grown to over $5.7bn in assets under management across 13 different active strategies.
Fidelity said the new funds would complement the existing Fidelity UCITS II ICAV - Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF launched in November 2022 with $800m under management.