Fidelity has launched two income-focused smart beta exchange traded funds, the company has announced.
The Fidelity Global Quality Income Ucits ETF and the Fidelity US Quality Income Ucits ETF have been designed to meet investor demand for income.
Both ETFs aim to provide exposure to high-quality companies looking to pay attractive dividends with the objective of delivering a yield in excess of the broader market while managing risk.
The investment philosophy is based on the idea that high-quality companies with stable earnings and cash flows have a better opportunity to outperform over time.
Commenting on the launch, head of ETFs at Fidelity International, Nick King, said: ‘Demand for smart beta strategies has been growing in recent years and is expected to continue to accelerate as investors look for competitively priced, differentiated products which provide a particular investment outcome.
‘Our first smart beta ETFs will track Fidelity-branded indices which leverage our experience in security analysis and portfolio construction. By combining our active investment expertise with the systematic aspects of passive investing, we believe we can offer a truly differentiated product.’
The ETFs will commence trading today on the London Stock Exchange and the Deutsche Boerse.