Fidelity Investments to Convert Six Thematic Mutual Funds to ETFs

Fidelity Investments announced plans to convert six actively managed thematic mutual funds into active equity exchange traded funds (ETFs).

The six thematic mutual funds are Fidelity Disruptive Automation Fund (FBOTX), Fidelity Disruptive Communications Fund (FNETX), Fidelity Disruptive Finance Fund (FNTEX), Fidelity Disruptive Medicine Fund (FMEDX), Fidelity Disruptive Technology Fund (FTEKX) and Fidelity Disruptors Fund (FGDFX).

With this change, Fidelity adds six transparent disruptive ETFs to its current active equity ETF lineup of nine funds, which as of October 31, 2022, had roughly $720 million in assets under management. The conversions are expected to be completed in June 2023.

"At Fidelity, we have a heritage of active management as well as deep fundamental research, and we are committed to delivering those proven capabilities to our customers through a range of investment vehicles including mutual funds and ETFs," said Tim Cohen, co-head of the Equity division within Fidelity's Asset Management business. "As investors' preferences continue to evolve, Fidelity remains focused on ensuring that our customers have access to the products and services they want to help them meet their distinct financial goals, from ETFs and mutual funds to CITs and custom SMAs."

Launched in April 2020, Fidelity's disruptive mutual funds were designed to invest in innovative business models, emerging industries, and technologies that are changing the status quo. The new ETFs will maintain the same investment objectives as the previous mutual funds.

"Fidelity has been an innovator in the active ETF space for years and today's announcement reinforces our commitment to growing our lineup with innovative strategies that help meet the evolving needs of investors," said Greg Friedman, Fidelity's Head of ETF Management and Strategy. "A growing number of investors are seeking the tax efficiency, trading flexibility and potential cost efficiency benefits of ETF vehicles. These ETF conversions deliver new opportunities and value for our existing shareholders while also expanding our solutions to help meet demand for access to thematic strategies in an ETF wrapper."