Fidelity International expands its ETF range with two active corporate bond strategies

The products, dedicated to the investment grade segment of the US dollar and euro corporate bond markets, represent an expansion of the asset manager’s “Research Enhanced” range.

Details of the new ETFs

The two ETFs launched are part of Fidelity’s Research Enhanced “Core” line, which is distinct from the existing “Paris Aligned Benchmark (PAB)” line. They are classified as Article 8 under the SFDR regulation, with the aim of achieving a higher ESG score than their respective benchmarks.

Strategy and Market Context

The strategies are defined as “benchmark-aware”: they do not passively replicate the index, but aim to preserve its fundamental risk characteristics (duration, credit rating, sectors) while seeking outperformance through active security selection. The approach is based on Fidelity’s credit research rather than macroeconomic bets or portfolio duration.

Neil Davies, Head of ETF Product & Capital Markets for Europe and Asia Pacific at Fidelity International, commented: “Persistent geopolitical risks, uneven global growth and an end-of-cycle environment are increasing demand for active, resilient and benchmark-aware solutions that can navigate uncertainty without taking on excessive risk. Our new ETFs reflect the way investors are increasingly accessing fixed income today, using active ETFs to gain flexibility, transparency and cost-efficient implementation, while increasing fixed income allocations to achieve income, diversification and portfolio stability.”

Authorised market maker Susquehanna provided seed capital of $20 million for each product.

Fidelity’s ETF bond fund now has $4.0 billion under management.

The table below summarises the key technical features.