Fidelity International has been the latest to join the low-cost ETF competition with the launch of six equity index funds.
The range of Irish-domiciled funds cover the US, Europe, Japan, Pacific Ex Japan, Developed Global and Emerging Markets and will be available to all investors direct via wholesale and institutional investment platforms for the same fee regardless of the amount invested.
The cheapest fund, the Fidelity S&P 500, presents a charging figure of 0.06%, while both the Fidelity MSCI Index Europe and the Fidelity MSCI Index Japan fund at 0.10%.
The global firm has also unveiled the Fidelity MSCI World Index fund at 0.12%, alongside the Fidelity MSCI Index Pacific ex-Japan fund at 0.13% and the Fidelity MSCI Index Emerging Markets fund at 0.20%.
Sterling and Euro currency hedged share classes will also be made available providing investors with added flexibility to manage their currency risk. The funds will be available to investors across 18 European markets.
Christophe Gloser, head of Wholesale Continental Europe, Fidelity International says: “While active management remains at the heart of our business we know that investors want choice and value when it comes to investing, whether that’s through an active fund, a passive fund or both.
“We have offered a range of index trackers for some time in the UK and more recently we launched a range smart beta ETFs across the globe. Extending this passive investment capability across Europe at market leading prices reaffirms our commitment to deliver greater choice and value for clients.”
Nick King, Head of Indexing and Exchange Delivered Products, Fidelity International, comments: “We have witnessed the strong growth in index tracking products. There is currently a total of $661bn invested in European domiciled equity index funds and this is only set to increase as investors look for efficient, low cost access to global markets. I am pleased that we can now offer clients in Europe the choice of some of the best value index funds available in the market. This is a clear demonstration of our objective to offer world class solutions to clients, however they want to invest.”
Fidelity has run UK domiciled (OEIC) index funds since 1996, raising the range to seven low-cost funds in 2014, and launching Smart Beta ETFs in 2017.