Fidelity Investments is expanding its roster of ETFs with four new thematic funds.
It has filed a registration statement with the Securities and Exchange Commission to launch a clean energy ETF, cloud computing ETF, digital health ETF and electric vehicles and future transportation ETF. All four are index ETFs that will trade on the Cboe and be managed by the same team, led by senior portfolio managers Deane Gyllenhaal and Louis Bottari working with portfolio managers Peter Matthew, Robert Regan and Payal Gupta.
They can invest across the market capitalization spectrum and in domestic, international and emerging market stocks and ADRs. Expense ratios are not yet available. The expected launch date is 75 days after the SEC filing, which is Sept. 21. Fidelity Management & Research Co. is the funds' manager and Geode Capital Management LLC, which was spun off from Fidelity years ago, serves as sub-advisor.
"Thematic ETFs are one of the big growth stories of the year," said Dave Nadig, the chief investment officer and director of research at ETF Trends and ETF Database. "Flows are over $30 billion in the first half, which is far more than any other individual sector."
Thematic ETFs focus on predicted long-term trends rather than specific sectors or companies, providing access to major shifts in the economy and industries or market. Ark Investment Management is a prime example of a fund manager focused on thematic investing with myriad ETFs targeting disruptive technologies such as genomic research, electric cars and fintech innovation. But many traditional asset managers have also launched thematic funds, including not only Fidelity, but also Invesco, Goldman Sachs, Putnam Investments and others.
