Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Do Fidelity's ETFs Spell Success? Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, August 10, 2012

Do Fidelity's ETFs Spell Success?

News summary by MFWire's editors

Todd Rosenbluth of S&P Capital IQ examines Fidelity's Select funds in light of rumors that Fidelity may be launching a set of ETFs, reports Teresa Rivas from Barron's.

Rosenbluth acknowledged that these funds have had a robust track record, but past performance does not indicate future returns.

Rosenbluth examines three of the Select funds, one called the Fidelity Select Biotechnology Portfolio. It has an expense ratio of 83 bps, a modest rate compared to its peers. But Rosenbluth notes that this is higher than SPDR S&P Biotech ETF, which is pegged at 35 bps. If Fidelity eyes an ETF version of this fund, it should offer an expense fee near or below the rule-based offerings.

Fidelity Select Health Care Portfolio, with an expense ratio of 80 bps, costs much more than the Health Care Select Sector SPDR Fund, which carges only 18 bps. If an ETF version of this fund will be launched, it could result in the new ETF getting market shares from smaller related ETFs, such as PowerShares Dynamic Health Care Sector Portfolio.

The last ETF in Rosenbluth's notes is the Fidelity Select Technology Portfolio. This fund also charges an expense ratio lower than the average for its peers. It has a strong top-quartile three-year record. However, the fee charged by this fund is still higher than the Vanguard Information Technology Index Fund with a fee of 19 bps. This fund's entry into the ETF space could hurt other diversified, small technology ETFs.

Rosenbluth concludes that any ETFs that Fidelity may launch has the potential to do well, with a large portion of the success coming from expense ratios. 

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use