The 10 passively managed sector exchange-traded funds that Fidelity Investments rolled out eight months ago have now surpassed $1 billion in managed assets.
A significant portion of Fidelity's asset growth occurred in the past three months with individuals and advisors investing more than $500 million in the ETFs, according to a statement released by Fidelity on Friday.
"Surpassing the $1 billion milestone in such a short period of time clearly demonstrates the growing demand for sector investments," said Anthony Rochte, president of SelectCo, Fidelity's dedicated sector investing division, in a statement. "We expect interest in sector investing, whether through our ETFs or our 44 actively managed sector mutual funds, to continue as individual investors and advisors seek to diversify their portfolios and use sectors as building blocks to help generate potential alpha and manage portfolio risk."
As of July 8, data shows six of the 10 ETFs have each accumulated more than $100 million in assets under management — with its largest, Fidelity MSCI Health Care Index ETF, at $172 million.
On October 24, Fidelity launched these 10 new sector equity ETFs based on MSCI indexes and subadvised by BlackRock. Each ETF has an expense ratio of 12 basis points, among the lowest in the industry. The ETFs also trade without commissions for advisors using Fidelity's RIA and National Financial's trading platforms, as long as the funds are purchased online in a Fidelity brokerage account with a minimum opening balance of $2,500. Individual broker-dealers might impose their own ticket charges for trades.
Fidelity also offers 44 actively managed sector mutual funds with $71 billion in assets — as of June 30, up nearly 39% from one year ago.
