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Fidelity Expands Suite Of Innovative Active Equity ETFs With Four New Funds

Release Date: 01 Feb 2021

-          Fidelity’s ETFs Continue to Gather Assets, Reaching More Than $24 Billioni
-          All Fidelity and Non-Fidelity ETFs Are Available to Purchase Commission-Free on Fidelity’s Industry-Leading Retail and Institutional Online Brokerage Platforms

BOSTON, February 1, 2021 -- Fidelity Investments today announced the launch of four new active equity exchange-traded funds (ETFs), which will be available on or about February 4, 2021, using its innovative proprietary structure. The four ETFs, which will be actively managed by Fidelity’s experienced portfolio managers and research teams, will be available to purchase commission-free for individual investors and financial advisors through Fidelity’s online brokerage platforms. The new active equity ETFs will be competitively priced with total expense ratios of 0.59%-0.64%. With this launch, Fidelity will offer 37 ETFs in its lineup -- including active equity and bond ETFs, factor ETFs, and sector ETFs -- with more than $24 billion in assetsii.

“Our goal is to offer investors unmatched overall value by providing them with a range of products to help meet their varied needs,” said Greg Friedman, Fidelity’s Head of ETF Management and Strategy. “Fidelity is committed to this new and growing chapter in the ETF space as investors seek actively-managed investment capabilities as well as the tax efficiency, trading flexibility and potential cost efficiency benefits of ETF vehicles. These active equity ETFs help bring proven Fidelity capabilities, including our heritage of active management and skilled portfolio managers, to an ETF wrapper.” 

The four new active equity ETFs and their portfolio managers will be: Fidelity Growth Opportunities ETF1 (managed by Kyle Weaver); Fidelity Magellan ETF1 (managed by Sammy Simnegar); Fidelity Real Estate Investment ETF1 (managed by Steve Buller); and Fidelity Small-Mid Cap Opportunities ETF1 (managed by Michelle Hoerber). The first three will have total expense ratios of 0.59% and utilize the same portfolio managers and research teams as their like-named mutual funds; the Fidelity Small-Mid Cap Opportunities ETF will have an expense ratio of 0.64% and utilize a new quantitative approach that extracts fundamental insights from Fidelity’s experienced small-cap, mid-cap, growth and value investment teams. 

1 These ETFs are different from traditional ETFs.

Traditional ETFs tell the public what assets they hold each day. These ETFs will not. This may create additional risks for your investment. For example:

          You may have to pay more money to trade the shares of these ETFs. These ETFs will provide less information to traders, who tend to charge more for trades when they have less information.

          The price you pay to buy ETF shares on an exchange may not match the value of each ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for these ETFs compared to other ETFs because they provide less information to traders.

          These additional risks may be even greater in bad or uncertain market conditions.

          Each ETF will publish on and a “Tracking Basket” designed to help trading in shares of the ETF. While the Tracking Basket includes some of the ETF’s holdings, it is not the ETF’s actual portfolio.

The differences between these ETFs and other ETFs may also have some advantages. By keeping certain information about the ETFs secret, they may face less risk that other traders can predict or copy their investment strategy. This may improve the ETFs’ performance. However, if the investment strategy can be predicted or copied, this may hurt the ETFs’ performance. For additional information regarding the unique attributes and risks of these ETFs, see each ETF’s prospectus.

Fidelity’s active equity ETFs will employ an innovative tracking basket methodology, which maintains the benefits of the ETF structure, provides information to market participants to promote efficient trading of shares, and preserves the ability to add value through active management. The active equity ETFs will begin trading on or about February 4, 2021 on the Cboe BZX Exchange, Inc. 

In June 2020, Fidelity launched its first suite of active equity ETFs: Fidelity Blue Chip Growth ETF (FBCG) 2, Fidelity Blue Chip Value ETF (FBCV) 2, and Fidelity New Millennium ETF (FMIL) 2. Fidelity’s ETF lineup will include seven actively-managed equity ETFs, three actively-managed bond ETFs, 15 factor ETFs, 11 passive equity sector ETFs and Fidelity ONEQ, all competitively priced and available for purchase commission–free on Fidelity’s ETF platform. As a leading provider of ETFs with more than $668 billion in ETF client assetsiii, Fidelity’s platform offers individual investors and advisors access to more than 2,000 ETFs, commission-free.

2 See disclosure in footnote 1 above.

“We are excited to grow our lineup of active equity ETFs in 2021 after launching our first suite and innovative methodology in 2020 and will continue to look for opportunities to help meet client needs in this space,” said Friedman.

Fidelity’s New Active Equity ETFs: Principal Investment Strategies

          Fidelity Growth Opportunities ETF3 (FGRO) will seek long-term growth of capital. The fund will normally invest primarily in equity securities of companies that Fidelity Management & Research Company LLC (FMR) believes have above-average growth potential.

          Fidelity Magellan ETF3 (FMAG) will seek long-term growth of capital. The fund will normally invest primarily in equity securities of companies that are either “growth” stocks or “value” stocks or both.

          Fidelity Real Estate Investment ETF3 (FPRO) will seek above-average income and long-term capital growth, consistent with reasonable investment risk. The fund will normally invest primarily in equity securities and normally invest at least 80% of its assets in securities of companies principally engaged in the real estate industry and other real estate related investments.

          Fidelity Small-Mid Cap Opportunities ETF3 (FSMO) will seek long-term growth of capital. The fund will normally invest primarily in equity securities and normally invest at least 80% of its assets in securities of companies with small to medium market capitalizations (which, for purposes of this fund, are those companies with market capitalizations similar to companies in the Russell 2500® Index).

3 See disclosure in footnote 1 above.

About Fidelity Investments

Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $9.8 trillion, including discretionary assets of $3.8 trillion as of December 31, 2020, we focus on meeting the unique needs of a diverse set of customers: helping more than 35 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 institutions with investment and technology solutions to invest their own clients’ money. Privately held for more than 70 years, Fidelity employs more than 47,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit

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Free commission offer applies to online purchases of Fidelity ETFs in a Fidelity retail account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal).

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs have management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

The objective of the actively managed ETF Tracking Basket is to construct a portfolio of stocks and representative index ETFs that tracks the daily performance of an actively managed ETF without exposing current holdings, trading activities, or internal equity research. The Tracking Basket is designed to conceal any nonpublic information about the underlying portfolio and only uses the Fund’s latest publicly disclosed holdings, representative ETFs, and the publicly known daily performance in its construction. You can gain access to the Tracking Basket and the Tracking Basket Weight overlap on or

Although the Tracking Basket is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the Fund at or close to the underlying NAV per share of the Fund, there is a risk (which may increase during periods of market disruption or volatility) that market prices will vary significantly from the underlying NAV of the Fund; ETFs trading on the basis of a published Tracking Basket may trade at a wider bid/ask spread than ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and, therefore, may cost investors more to trade, and although the Fund seeks to benefit from keeping its portfolio information secret, market participants may attempt to use the Tracking Basket to identify a Fund’s trading strategy, which, if successful, could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Fund and its shareholders.

Because shares are traded in the secondary market, a broker may charge a commission to execute a transaction in shares, and an investor may incur the cost of the spread between the price at which a dealer will buy shares and the price at which a dealer will sell shares

Keep in mind, investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Past performance is no guarantee of future results

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

Value stocks can perform differently from other types of stocks, and can continue to be undervalued by the market for long periods of time.

Changes in real estate values or economic conditions can have a positive or negative effect on issuers in the real estate industry.

Investments in smaller companies may involve greater risks than those in larger, more well known companies.

Fidelity, Fidelity Investments, Fidelity Investments and the pyramid logo are registered service marks of FMR LLC. The third party trademarks appearing herein are the property of their respective owners.

Before investing, consider the exchange traded funds’ investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC, 200 Seaport Boulevard, Boston, MA 02110

Fidelity Distributors Company LLC, 500 Salem Street, Smithfield, RI 02917

Clearing, custody or other brokerage services may be provided by National Financial Services LLC, or Fidelity Brokerage Services LLC. Members NYSE, SIPC, 200 Seaport Blvd, Boston, MA 02210

© 2021 FMR LLC. All rights reserved.


i Fidelity Investments, as of January 8, 2021 
ii Ibid
iii Fidelity Investments, December 31, 2020. Based on number of ETFs, AUM, AUA, and market share

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