Fidelity Investments is planning to convert six more of its mutual funds into exchange-traded funds, adding to a trend that’s affected nearly $100 billion in assets.
The Boston-based asset manager will turn the six actively managed mutual funds into ETFs in November, according to a filing Wednesday. Those funds collectively manage assets worth roughly $13 billion.
The Fidelity Large Cap Value Enhanced Index Fund, with $5.2 billion in assets, is the largest fund set to undergo the switch.
Including Fidelity’s planned move, more than 50 mutual funds have been switched to ETFs since the first such conversion two years ago, according to data compiled by Bloomberg Intelligence.
It’s a tactic that’s proved increasingly popular as investors opt for lower-cost, tax-efficient ETFs over their mutual fund brethren. Investment Company Institute data show that mutual funds are on track to post net outflows for a sixth consecutive year, while ETFs have absorbed about $194 billion in 2023.
The conversions include benefits such as “lower expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency,” according to Wednesday’s filing. The management teams will remain the same, and expense ratios on the new ETFs haven’t been set yet, a Fidelity spokesperson said.
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
