Fidelity International has launched three actively-managed ESG ETFs, further expanding the five-strong Sustainable Family range of funds it released in last September.
The ETFs, which each comprise US, global and European indices, employ a "systematic active strategy" and will hold companies that have achieved high scores using Fidelity's Sustainable Ratings - internally-produced five-stage ratings between buy and sell, and sustainable ratings marked between A and E.
Each of the new portfolios will typically hold between 250 and 300 stocks and will be rebalanced quarterly. Fidelity Sustainable Research Enhanced US Equity and Enhanced Europe Equity will have OCFs of 0.3%, while the Enhanced Global Equity fund will have an OCF of 0.35%.
The former two will track the MSCI Europe and USA indices respectively, while the global fund will track the MSCI World index.
Fidelity International head of ETFs Nick King said: "Incorporating sustainable investing principles is a key priority for many of our clients. We recently launched our proprietary sustainability ratings which draw upon the assessments of more than 160 research analysts and the expertise of our dedicated ESG team.
"These new ETFs provide an enhanced beta exposure by leveraging both our proprietary ESG ratings and our fundamental research insights to select and weight securities, while seeking to capture the characteristics of the broader market."
Fidelity International global head of stewardship and sustainable investing Jenn-Hui Tan added: "Sustainable investing has proven to be one of the most significant shifts in asset management in a generation, heightened by increasing evidence that ESG investing can enhance financial returns.
"This trend was reaffirmed in our own research where stocks with higher ESG ratings outperformed lower-rated stocks during the recent Covid-19 induced market sell-off.
"In line with our fiduciary duty and in response to our clients' demands, we have been substantially increasing our focus on sustainable investment over recent years, including the launch of our Sustainable Ratings and Sustainable Family fund range."
The five products currently in the Sustainable Family range of funds include two thematic products focusing on carbon reduction and water and waste, as well as three "best-in-class" equity and fixed income funds.
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