Fidelity Unveils “Quality Value” Series with Dual ETF Launch

Fidelity International has launched its new Quality Value ETF series with a dual introduction: ETF stream can reveal.

The Fidelity US Quality Value UCITS ETF (FUSV) and Fidelity Global Quality Value UCITS ETF (FGLV) were launched with total expense ratios (TERs) of 0.25% and 0.40%, respectively, although fees are discounted for the first six months – to 0.2% and 0.3%.

The new funds are listed on the German Stock Exchange today and will begin trading on the London Stock Exchange tomorrow. The listing on the SIX Swiss Exchange and the Borsa Italiana will follow.

FUSV and FGLV track the Fidelity US Quality Value and Fidelity Global Quality Value indices. The family aims to capture the performance of large and medium-sized companies with attractive valuations, strong ESG characteristics and certain “quality characteristics” while controlling exposure to sectors and countries.

According to Fidelity, the approach aims to “enhance the definition of value” by considering various intangible assets such as research and development, and “avoid value traps” by focusing on quality companies.

The ETFs fall under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).

Alastair Baillie Strong, Head of ETFs at Fidelity International, commented: “The foundation of our ETFs is their ability to leverage our research and quantitative capabilities to provide differentiated exposures through advanced index or active ETFs.

“The new Quality Value ETFs can help clients build a diversified allocation to quality names while investing in attractively valued companies.”

The series follows the popular “Quality Income” series, which the company says includes $2.5 billion in assets under management (AUM). The range accounts for almost a third of its European ETF franchise by AUM.

Fidelity International recently expanded its active ETF offering with two Paris-focused fixed income ETFs.