Fidelity Investments has expanded its active ETF lineup with two new funds focused on collateralized loan obligations. The Fidelity AAA CLO ETF (FAAA) invests at least 80% of assets in AAA-rated CLOs with a gross expense ratio of 0.20% after a 12-month fee waiver, while the Fidelity CLO ETF (FCLO) targets CLOs rated between BBB+ and B- with a 0.45% expense ratio after a similar waiver. Both funds are now available commission-free on Nasdaq and through Fidelity’s brokerage platforms.
Harley Lank, head of High Income & Alternatives at Fidelity, said that “investors are looking for new return and diversification opportunities.” With this launch, Fidelity’s exchange-traded platform now comprises 77 ETFs and ETPs managing $154 billion in assets. The company administers $17.5 trillion in assets overall and employs more than 78,000 associates.