Fidelity To Launch Actively Managed ETF(s)

Fidelity’s
first foray into actively managed ETFs is for
an actively-managed ETF, that will most likely be named Fidelity Corporate Bond
ETF according to Fidelity’s preliminary registration statement with the SEC.
Fidelity Corporate Bond ETF represents Fidelity’s first actual filing in the
actively managed ETF space, signaling that the discussion of whether to enter
the ETF space has shifted to when and how to enter it.  The ETF will be
offered to investors who seek targeted exposure to the corporate sector and
will have investment policies and objectives similar to Fidelity Corporate Bond
Fund, which launched in May 2010.  While it is still premature to talk
about this ETF at this time, and still early to do much more than speculate on
which actively managed ETFs will follow, the fact that Fidelity has chosen to
enter the actively managed ETF market in the corporate bond sector is most
likely due to the Bond Group’s strength in fundamental, research-driven
security selection … a skill set that could be claimed and applied to every
asset class under their roof. (It is also a perfect competitive complement to
PIMCO’s actively managed Total Return ETF.) So, while this preliminary
registration is really just dipping one oar into the water, I continue to
expect a fleet of Fidelity actively managed ETFs to follow.