Fidelity to Convert 6 Enhanced Index Funds to ETFs

For existing shareholders of the fund whose accounts can hold an ETF, their fund shares will be automatically converted, Fidelity said.

At a meeting on June 14, the Board of Trustees of Fidelity Commonwealth Trust II approved on behalf of the fund, the reorganization of the fund into an ETF, which will continue to be managed by Fidelity Management & Research Co., the company said.

The fund will be reorganized into a newly created ETF, Fidelity Enhanced Small Cap ETF, that Fidelity said is a series of Fidelity Covington Trust.

The fund and ETF have "identical investment objectives, fundamental investment policies and principal investment strategies" according to Fidelity.

The six enhanced index funds being converted to ETFs are:

• Fidelity International Enhanced Index Fund (FIENX) to the Fidelity Enhanced International ETF.
• Fidelity Large Cap Core Enhanced Index Fund (FLCEX) to the Fidelity Enhanced Large Cap Core ETF.
• Fidelity Large Cap Growth Enhanced Index Fund (FLGEX) to the Fidelity Enhanced Large Cap Growth ETF.
• Fidelity Large Cap Value Enhanced Index Fund (FLVEX) to the Fidelity Enhanced Large Cap Value ETF.
• Fidelity Mid Cap Enhanced Index Fund (FMEIX) to the Fidelity Enhanced Mid Cap ETF.
• Fidelity Small Cap Enhanced Index Fund (FCPEX) to the Fidelity Enhanced Small Cap ETF.

Photo: Shutterstock