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.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
