The Fidelity Global Equity Enhanced Yield UCITS ETF and the Fidelity US Equity Enhanced Yield UCITS ETF have been designed to provide investors with a differentiated source of income while maintaining exposure to equity markets.
Neil Davies, head of ETFs at Fidelity International, said: “As market volatility continues to challenge investors, we are seeing growing demand for strategies that can provide alternative sources of income while allowing investors to remain invested in equity markets.”
The new ETFs combine fundamental research with a systematic options overlay, incorporating insights from Fidelity’s global research platform into stock selection and portfolio construction, within a risk-managed framework.
The options overlay systematically sells index cell options aiming to generate additional income. Furthermore, ESG factors are considered when assessing investment risks and opportunities.
Davies added: “What differentiates this range is that it gives investors access to Fidelity’s bottom-up equity research in a systematic way. Alongside this, a disciplined, rules-based options strategy seeks to provide an additional source of income, with the option premiums also helping to cushion some of the impact of market declines.”
The two ETFs are listed on Germany’s Xetra and Italy’s Borsa Italiana and will be added to the London Stock Exchange later this month.
The launch bolsters Fidelity International’s active ETF offering, which now comprises 28 products with $16.8 billion in ETF assets under management.
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