Fidelity International has bolstered its ETF stable today (5 October) by launching its new Equity Enhanced Yield range, including the Fidelity Global Equity Enhanced Yield UCITS ETF and the Fidelity US Equity Enhanced Yield UCITS ETF.
The strategies combine actively managed equity portfolios with an options strategy that systematically sells index call options, designed to generate additional income.
Neil Davies, head of ETFs at Fidelity International, said: “What differentiates this range is that it gives investors access to Fidelity’s bottom-up equity research in a systematic way.
“Alongside this, a disciplined, rules-based options strategy seeks to provide an additional source of income, with the option premiums also helping to cushion some of the impact of market declines.”
Vincent Li, head of derivatives at the firm, praised options as a “powerful” tool for reshaping return profiles.
“Our approach is deliberately systematic, using a disciplined framework to select and implement index call options with the aim of generating consistent additional income, while retaining meaningful participation in equity markets,” he said.
Each ETF will be supported by $5m in seed capital from market participant Susquehanna, marking further expansion of Fidelity’s active ETF range.