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London Stock Exchange Group celebrates Fidelity on the listing of 5 thematic ETFs

Posted: 30 September 2022

Fidelity has extended its ETF capability with the launch of 5 thematic index ETFs. As the world around us is constantly changing, many investors are looking to explore thematic solutions to capture some of the most powerful trends reshaping the future. A plethora of new developments in the area of transportation, energy production, and digital infrastructure are changing the way we connect, engage, and transact.

Demand for thematic strategies has been growing in recent years and is expected to continue to accelerate as investors look for low cost, differentiated exposures to long-term structural trends. Many of these themes are still emerging and are forecast to see more growth as the world changes. Thematic investing strategies aim to provide access to returns that could arise from the emergence of and transition to these themes.

Fidelity International is focused on providing world class investment solutions to meet the needs of its clients. Fidelity is launching these particular themes as we believe these are key trends supporting structural shifts to a low carbon and digital world.

The strategies are passively managed and will track indices which incorporate Fidelity investment expertise and are designed to reflect the performance of stocks most relevant to a specific theme, while considering sustainability. Fidelity’s active expertise is the starting point for our approach, which can be characterised by three distinct features

  • Fidelity fundamental research - uncovers and defines relevant sub-themes and related components of the value chain for each theme
  • Fidelity’s Sustainable research - Define the scope of the required ESG rules to be incorporated into index methodology
  • Quantitative Expertise - Build systematic processes to identify relevant stocks for themes

The five themes tracked in the ETF range are clean energy, electric vehicles and future transportation, cloud computing, digital health and the metaverse. All are article 8 aligned under the Sustainable Finance Disclosure Regulation (SFDR) and are competitively priced with OCFs of 0.50%.

With the newly launched products, Fidelity’s ETF range now encompasses 17 differentiated solutions from Income, Sustainable Equity, Sustainable Fixed Income and Thematic.

Nick King, Head of ETFs at Fidelity International, commented:

“Thematic investing seeks to identify and capitalise on long-term, structural trends by investing across countries and sectors to capture transformative drivers of the global economy, businesses and society. Many of these themes have an enhanced focus on sustainability as well as seeking to address specific social and environmental challenges.”

“Our thematic indices have been constructed through a collaboration of our proprietary fundamental, sustainable and quantitative research capabilities to ensure that we are providing clients exposure to the best stocks particular theme, at a competitive price.”