Fidelity adds to $14B alt lineup with three new ETFs

Fidelity Investments has launched three new liquid alternatives ETFs, enhancing its $14 billion alts lineup.

The actively managed options-based funds all aim to outperform the S&P 500 index and are offered commission-free for individual investors and financial advisors through the firm’s online brokerage platforms. They began trading on CBOE on Thursday.

The new funds are: Fidelity Dynamic Buffered Equity ETF (FBUF), Fidelity Hedged Equity ETF (FHEQ), and Fidelity Yield Enhanced Equity ETF (FYEE).

The way the portfolios have been constructed is to have a similar risk profile to the benchmark index with a mix of companies with attractive valuations and strong quality metrics. They are managed by a team including long-tenured co-managers Eric Granat, Anna Lester, George Liu, Mitch Livstone, and Shashi Naik.

“The launch of these ETFs broadens Fidelity’s liquid alts offering at a time when we’re seeing increased client demand for downside protection and enhanced income while invested in equity markets,” said Bill Irving, Head of Fidelity Asset Management Solutions at Fidelity Investments. “The new options-based equity strategies seek to offer risk mitigation, volatility reduction, or yield enhancement in a familiar ETF wrapper, backed by Fidelity’s legacy of active management.”

Fidelity now has 69 ETF products, including 25 actively managed equity ETFs, 13 fixed-income ETFs, 13 equity factor ETFs, six passive thematic ETFs, 11 passive equity sector ETFs, and Fidelity ONEQ.

The firm also recently launched a spot bitcoin ETF, Fidelity Wise Origin Bitcoin fund (FBTC).