Fidelity's Ron O'Hanley
has passed over Geode Capital Management
in favor of ETF-partner BlackRock
. Formal word came when SEC filings
made by Fidelity revealed plans by Tony Rochte's
Rocky Mountain skunkworks, dubbed SelectCo
Rochte is overseeing the launch of new Fidelity-sector ETFs that will be subadvised by BlackRock's iShares
The agreement between BlackRock and Fidelity will tie 10 passively-managed ETFs to MSCI
indexes [N-1A filing
and ETF Trends
both reported on the move.
“Fidelity hired BlackRock to leverage its passive investment management expertise and scale, allowing us to get to market faster,” according to a statement from Fidelity spokeswoman Nicole Goodnow, which was initially quoted by Financial Times
reporter Jackie Noblett, who was cited by ETF Trends
The move is the latest piece of the Fidelity-BlackRock ETF alliance. Three years ago Fidelity began offering
25 iShares ETFs commission free on its discount brokerage platform, and that deal has since expanded
to cover 65 iShares ETFs. Meanwhile, SSgA alum Tony Rochte rejoined
Fidelity a year ago specifically to run a new division focuses on specialized sector investments.
Separately, in May the SEC approved
Fidelity's request to launch active ETFs.
Neil Anderson, Managing Editor
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