Fidelity International has launched two new research-enhanced bond funds, adding to its $13.8bn exchange-traded fund (ETF) range.
The Fidelity USD Corporate Bond Research Enhanced UCITS ETF and Fidelity EUR Corporate Bond Research Enhanced UCITS ETF will both have ongoing charges of 0.03% for the first six months, before rising to 0.19% for the non-hedged share classes and 0.24% for euro hedged options.
They will be actively run with a benchmark-aware process and will aim to achieve income and capital growth through stock selection rather than macroeconomic calls or duration positioning.
The former will be linked to the Bloomberg US Corporate Investment Grade index, while the latter will follow the regional, sector, rating and currency characteristics of the Bloomberg Euro Aggregate Corporate index.
Both are Article 8 funds, targeting an environmental, social and governance (ESG) score higher than the benchmark index.
Neil Davies, head of ETF product and capital markets for Europe and Asia Pacific at Fidelity International, said: “Ongoing geopolitical risks, uneven global growth and a late-cycle backdrop are increasing demand for active, resilient, benchmark-aware solutions that can navigate uncertainty without taking outsized risk.
“Our new ETFs reflect how investors are increasingly accessing fixed income today –- using active ETFs for flexibility, transparency and cost-efficient implementation, while increasing allocations to fixed income for income, diversification and portfolio stability.”