Fidelity US Fundamental Large Cap Growth UCITS ETF: new launch by Fidelity International on the LSE

The Fundamental Equity range has been expanded with a new sub-fund, listed on Xetra and Borsa Italiana from 16 September and on the London Stock Exchange from 17 September.

The fund, domiciled in Ireland, is tradable from today on the London Stock Exchange. Management is entrusted on a sub-advisory basis to Fidelity Investments, a US-based entity independent of Fidelity International.

Fund characteristics

The new ETF has an annual cost (OCF/TER) of 0.38 per cent. The benchmark index is the Russell 1000 Growth UCITS Capped Net Tax Index, which is used for risk monitoring and performance comparison. The ETF does not track the index and is therefore an actively managed product.

According to the fund’s documentation, the fund actively invests in a portfolio comprising mainly shares of large-cap companies domiciled in the United States or conducting the majority of their business there. This is an accumulation share class, with the US dollar as the base currency: dividends generated by the portfolio are reinvested in the fund.

The investment strategy

As announced by Fidelity International, the strategy offers systematic access to Fidelity Investments’ most compelling investment ideas within the US large-cap growth segment. The process combines Fidelity Investments’ active management and bottom-up fundamental research with a systematic approach applied to the US large-cap growth equity universe, with the aim of bringing together the strongest investment ideas from multiple portfolio managers within a single strategy.

The documentation also states that the process assesses a range of environmental and social characteristics, including carbon intensity and emissions, energy efficiency, water and waste management, biodiversity, product safety, supply chain, health and safety, and human rights. The stated objective is to achieve an ESG score for the portfolio that exceeds that of the benchmark.

Neil Davies, Head of ETF Product & Capital Markets for Europe and Asia Pacific at Fidelity International, said: “Active ETFs are one of the fastest growing areas of the European investment market, and we see significant opportunity ahead as more investors embrace the flexibility, transparency and tradability of the ETF structure.”

Davies added: “ Our focus is on capturing that growth by bringing the best of Fidelity’s capabilities to our clients through new and differentiated ETFs. The launch of the Fidelity US Fundamental Large Cap Growth ETF builds on the strong client response to our Fundamental Equity ETF range and is another step in broadening our active ETF offering to meet evolving client needs.”

The context: the growth of active ETFs in Europe

According to data released by Fidelity International, assets under management in actively managed ETFs domiciled in Europe reached $142.6 billion at the end of August 2026, having almost quadrupled since the end of 2023. Despite this expansion, active strategies still account for only 3.6 per cent of total European ETF assets, compared with around 12.8 per cent in the United States (Fidelity International data as at 31 August 2026).

The Fundamental Equity range and Fidelity International’s positioning

The launch forms part of Fidelity International’s Fundamental Equity ETF range, introduced in September 2025 with the Fidelity US Fundamental Large Cap Core UCITS ETF and the Fidelity US Fundamental Small-Mid Cap UCITS ETF. According to the company, the two funds have attracted encouraging interest from clients, confirming the demand for high-conviction active equity strategies delivered via ETFs.

Assets under management in Fidelity International’s active ETFs total $16.8 billion (as at 31 August 2026). With the launch of the Fidelity US Fundamental Large Cap Growth UCITS ETF, the firm’s total ETF range now stands at 27 products.

Conclusions

The Fidelity US Fundamental Large Cap Growth UCITS ETF began trading on the London Stock Exchange on 17 September 2026. The fund expands Fidelity International’s Fundamental Equity ETF range, launched a year earlier with the Core and Small-Mid Cap funds, in a European active ETF market that continues to grow, whilst still accounting for a minority share of total ETF assets compared with the United States.