Fidelity has announced plans to convert its first mutual fund into an ETF | Jobs Vox


Fidelity Investments announced on Wednesday that it plans to convert six actively managed thematic mutual funds into active equity exchange-traded funds.

The conversions, which are expected to be completed in June, will mark the first time Fidelity has converted mutual funds into ETFs, a Fidelity spokeswoman said.

The change adds six clearly disruptive ETFs to Fidelity’s current active equity ETF lineup, which had nearly $720 million in assets under management as of Oct. 31.

The Fidelity Disruptive Automation Fund, the Fidelity Disruptive Communications Fund, the Fidelity Disruptive Finance Fund, the Fidelity Disruptive Medicines Fund and the Fidelity Disruptive Technology Fund each have an expected date of June 9, according to a Wednesday filing with the SEC. The Fidelity Disruptors Fund has a conversion date of June 16, the filing shows.

In the year Fidelity’s Disruptive Mutual Fund, launched in 2020, is “designed to invest in new business models, emerging industries and disruptive technologies,” according to a Fidelity news release. In the year As of September 30, the disruption fund’s assets were about $430 million, the spokesman said.

Fidelity’s move is in line with an industry trend in recent years of managers shifting mutual funds to ETFs, said Todd Rosenbluth, research and analyst at VettaFi, who cited changes at Dimensional Fund Advisors and JPMorgan Asset Management as examples.

“Investor interest has shifted toward ETFs and away from mutual funds,” Mr. Rosenbluth said, adding that he expects to see more mutual fund-to-ETF conversions by Fidelity, as well as other asset managers with ETF presence. “Property managers want to skate where the puck is going.”

As of Sept. 30, Fidelity had $9.6 trillion in assets under management, including $3.6 trillion in estimated assets, the spokeswoman said.


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