Fidelity International is expanding its Enhanced Index ETF range with two new “Quality Value” ETFs, which will be classified as Article 8 under the Sustainable Finance Disclosure Regulation.
The Fidelity US Quality Value UCITS ETF and Fidelity Global Quality Value UCITS ETF will form the initial part of the firm’s new Quality Value ETF range.
Fidelity said that following the success of its $2.5bn* Fidelity Quality Income ETF range, the Quality Value range offers a ‘differentiated approach to traditional value factor investment strategies by addressing some of the key challenges of value investing’.
Fidelity’s approach aims to improve the value definition to account for certain intangible assets such as Research & Development, to avoid value traps by focusing on quality stocks while controlling sector and country exposures relative to the broad market.
The new ETFs will track the Fidelity Quality Value Index family, designed utilising the firm’s quantitative research and in-depth experience in factor investing, to reflect the performance of stocks of large and mid-capitalisation companies that exhibit attractive valuation, ESG characteristics and specified investment quality attributes.
The funds, classified as Article 8 under the Sustainable Finance Disclosure Regulation (“SFDR”), aim to provide investors with a total return, taking into account both capital and income returns, which reflects, before fees and expenses, the return of the respective geographical index.
Alastair Baillie Strong, Head of ETFs at Fidelity International, said: “The foundation of our ETFs is their ability to leverage our research and quantitative capabilities to provide differentiated exposures, through enhanced index or active ETFs. We want to provide clients with our expertise, as they seek to tackle the many idiosyncratic risks posed by today’s volatile global macroeconomic and geopolitical backdrops. The new Quality Value ETFs can help clients build a diversified allocation with quality names while also investing in attractively valued companies.”
Main image: clark-van-der-beken-BSjlgIx4gBQ-unsplash
