Fidelity International has rolled out three actively-managed exchange-traded funds (ETFs) implementing ESG criteria.
The ETFs employ a systematic active strategy and leverage the fund managers’s own research and sustainability standards.
Companies are selected and weighted in favour of those that Fidelity has identified as having a positive fundamental outlook and strong sustainability credentials.
The portfolios of the Fidelity Sustainable Research Enhanced Equity ETFs typically consist of 250 to 500 stocks, depending on geographical region, and will be rebalanced quarterly.
Jenn-Hui Tan, global head of stewardship and sustainable investing, said: "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.”
The ongoing charges figure of the ETFs have been set at between 0.30% and 0.35%.
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