Fidelity in talks to launch new proprietary ETFs: Sources

Rumors have been flying of late that Fidelity Investments may be looking to expand its proprietary exchange-traded-fund lineup. Now sources say the firm has been ramping up talks with index providers and other partners to do just that. “They have had multitude conversations with a number of providers,” said an official at one firm that partners with third parties to launch ETFs. “There was slew of conversations going on in the fourth quarter,” said the official, who asked not to be identified. It is unclear whether the mutual fund giant will launch actively managed or passively managed ETFS, sources said. “They could do both,” another person who heard about the conversations said, also declining to speak for attribution. Rodger A. Lawson, who is stepping down as Fidelity president, told The Wall Street Journal in a Jan. 21 article that the company might have an “innovative” development in the ETF space soon. Fidelity spokesman Steve Austin declined to discuss whether the firm plans to launch more proprietary ETFs, citing the company's policy not to comment on speculation. Fidelity currently has one exchange traded fund — the Fidelity Nasdaq Composite Index Tracking Stock (ONEQ), which tracks the Nasdaq Composite Index. The firm offers more than 800 ETFs by other providers.