Fidelity International has launched a new ETF range, designed to help investors remain invested through market cycles.
The Dynamic Buffer ETF range strategy combines a research-enhanced equity approach with a strategy designed to cushion portfolio losses during moderate market declines, while retaining participation in equity market gains.
The targeted level of downside buffer is designed to adjust gradually over time as markets move and is not guaranteed.
Fidelity claims that range will also consider ESG factors into account when assessing investment risks and opportunities.
The range has launched with the Fidelity Global Equity Dynamic Buffer UCITS ETF (FGLB) and Fidelity US Equity Dynamic Buffer UCITS ETF (FUSB), which were listed on the London Stock Exchange Borsa Italiana, Xetra. A further listing on the SIX Swiss Excahnge is planned for 26 October.
Both ETFs have an ongoing charges figure of 0.5%.
Neil Davies, head of ETFs at Fidelity International, said: “Market corrections are a recurring feature of equity investing and can occur without warning. For investors, the challenge is how to navigate these periods without losing sight of their long-term investment objectives.
“Our Dynamic Buffer range has been designed with this in mind, combining Fidelity’s research-driven equity approach with a systematic downside buffer target. It brings a new type of equity solution to our active ETF range, broadening the choice available to clients as we continue to grow our offering.”
Fidelity is one of the largest providers of active ETFs in Europe, with $16.6bn (£12.4bn) in ETF assets under management.