Fidelity Investments, the Boston-based financial services company perhaps best known for mutual funds and retirement savings products, said it it is introducing the company’s first suite of passive sector exchange traded funds, or ETFs.
In response to investor demand, 10 new passive sector ETFs started trading on the New York Stock Exchange Thursday, Fidelity said in a press release.
According to the firm, these ETFs will be the lowest-cost passively managed sector ETFs in the industry with total expense ratios of 0.12 percent --- nearly 80 percent below the industry average.
“Since the financial crisis five years ago, investors and advisors have told us that they are looking for additional ways to diversify their portfolios and get exposure to specific industries outside of the typical cap-weighted or style specific options such as large or small cap, or growth and value,” Anthony Rochte, president of SelectCo, the company’s dedicated sector investing division, said in a statement. “Our new passive sector ETFs can provide for that diversification, serving as building blocks to help investors and advisors find new ways of generating alpha through asset allocation and better manage portfolio risk.”