Alternative Investments/ESG: Fidelity Launches ETFs For Sustainable Corporate Bonds

For the first time, fixed income ETFs from Fidelity.

Fidelity International has launched its first fixed income ETFs, and the two new funds come with the added benefit of a sustainable skew. The Fidelity Sustainable Global Corporate Bond Multifactor and Fidelity Sustainable USD EM Bond UCITS ETFs offer a “systematic active strategy” to investors while utilizing the firm’s proprietary analyst research. (Investment Week)

Both ETFs will list on the London Stock Exchange, Deutsche Boerse, and SIX Swiss Exchanges.

They are classified under article 8 of the EU Sustainable Finance Disclosure Regulation, which requires the funds to “promote environmental and/or social characteristics.”

Fidelity Sustainable Global Corporate Bond Multifactor ETF (FSMF)

Featuring an ongoing charge of 0.25%, this ETF tracks the Bloomberg Barclays Global Aggregate Corporate index.

The fund selects lucrative bonds as identified by Fidelity’s proprietary multi-factor credit model refined by filtering through sustainability criteria. The model assigns due importance to factors such as sentiment, valuation, fundamentals, and ESG.

Fidelity Sustainable USD EM Bond UCITS ETF (FSEM)

This ETF gives investors exposure to the sovereign debt of emerging markets analyzed with reference to the company’s overall debt, sustainability ratings, and external ESG ratings.

The ETF features an ongoing charge of 0.45%.

It tracks the JP Morgan ESG EMBI Global Diversified index.


Nick King, head of ETFs, Fidelity International, said: “I am delighted to expand our ETF range with the launch of our first fixed income exchange-traded products. Incorporating sustainable investing principles has become the key priority for many of our clients globally and we can now offer access to our proprietary research capabilities across asset classes in a transparent, cost-effective structure.”

“Combining the very best of our active research platform and sustainability expertise with best-in-class portfolio construction techniques, our systematic fixed income can create low-cost portfolios tailored to our clients’ specific needs,” he added.

Related Story:  Fidelity Launches ETF Focused On Sustainable Emerging Market Companies

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Michael Saylor Unmoved By Crypto Weakness; “We Think It’s The Future Of Money”
May 20, 2022     Digital Assets, News

Michael Saylor, CEO of MicroStrategy (NASDAQ: MSTR), who is permanently bullish on bitcoin, reiterated his positive outlook for the leading crypto in an interview on Thursday. Note that MicroStrategy currently…
Digital Assets: Traditional Markets Could Suffer Contagion From (Un)Stablecoins (SEC Chair Gensler)
May 20, 2022     Digital Assets, News

The crypto world was dealt a body blow by the collapse of the TerraUSD (UST) stablecoin earlier this month. The Terra meltdown is now being referred as crypto’s “Lehman moment.”…
Venture Capital: Big-Ticket Funding Rounds In Fintechs
May 20, 2022     FinTech, News, Venture Capital

Fast-growing, Southeast Asia-focused payments infrastructure platform Xendit closed on a US$300 million Series D funding co-led by Coatue and Insight Partners with additional investment from Accel, Tiger Global, Kleiner Perkins,…
FinTech: Sam Bankman-Fried Led FTX.US Makes Inroads Into Stock Trading
May 20, 2022     Digital Assets, FinTech, Latest News, News

FTX Stocks is an equity trading platform offered through the FTX US trading application. FTX US announced Thursday a private beta phase trading on the platform for US customers selected…