With continued strong momentum in 2024,
Fidelity ETF business increases its competitive crypto
offering
TORONTO, July 23,
2024 /CNW/ - Fidelity Investments Canada ULC
(Fidelity) is announcing a reduction in the management fee of
Fidelity Advantage Ether ETF™ (FETH-T) to 0.39% with an
estimated prospective management expense ratio (MER) of 0.44%
(inclusive of estimated HST), effective July
23, 2024. This marks a significant reduction from the ETF's
existing MER of 0.95% (as at March
31, 2024). This reduction will also be passed along to
Fidelity Advantage Ether ETF Fund™, which invests directly
in the ETF.
This reduction builds on Fidelity's previous reduction of
fees on Fidelity Advantage Bitcoin ETF® in
January 2024.
Since launching its ETF business in September 2018, Fidelity ETF assets under
management have grown to approximately $7.5B, with $2.6B
in record net creations year-to-date (as at June 30, 2024). Assets for Fidelity All-in-One
ETFs have increased from $962M (as at
December 31, 2023) to $2.4B (as at June 30,
2024).
With a mission to help build better futures for
investors, Fidelity has expanded its ETF offerings to 51
investment strategies across asset classes, providing investors
choice and access to a wide range of investment strategies
supported by the global strength and scale of the broader Fidelity
Investments organizations.
From Fidelity's All-in-One ETFs to Factor ETFs, and Active ETFs
to Digital Asset ETFs, Fidelity's ETF line up is actively evolving
and under regular review to help meet investor and marketplace
demands.
Fidelity Advantage Ether ETF™ and other digital
asset strategies are custodied by Fidelity Clearing Canada ULC's
institutional grade clearing and custody platform. Leveraging
Fidelity Investments' early exploration and global expertise and
leadership in the blockchain and digital assets space, this
platform incorporates vaulted cold storage, physical, cyber and
operational controls, and multi-level innovative safeguards.
How does it work and why Fidelity Advantage
Ether ETF™ and Fidelity Advantage Ether ETF
Fund™?
There are several reasons why investors may wish to invest in
these funds instead of purchasing and
storing cryptocurrencies directly.
- How It Works - The investment objective of Fidelity
Advantage Ether ETF™ is to invest in ether. Fidelity
Advantage Ether ETF Fund™ invests in the ETF. When an
investor purchases the ETF, they will own units of the ETF, which
in turn owns physical ether. The price of units will go up and down
directly in relation to the price of ether.
- Fidelity Security Features - Fidelity Advantage
Ether ETF™ custodies ether through Fidelity Clearing
Canada. The physical ether that the ETF owns is stored using an
institutional-grade custodial model, offering the ETF access to the
trading and custody of digital assets in a safe and secure way.
- Tax Efficiency and Liquidity - Like all
Fidelity ETFs and corresponding mutual fund versions, the ether
funds are eligible for tax-advantaged registered accounts. Similar
to purchasing a stock on the exchange, investors can invest in
Fidelity Advantage Ether ETF™ the same way they invest
in other ETFs, by purchasing ETF units on the TSX.
For more information, please visit www.fidelity.ca
About Fidelity Investments Canada ULC
At Fidelity Investments Canada, our mission is to build a better
future for our clients. Our diversified business serves financial
advisors, wealth management firms, employers, institutions and
individuals. As the marketplace evolves, we are constantly
innovating and offering our clients choice of investment and wealth
management products, services and technological solutions all
backed by the global strength and scale of Fidelity. With assets
under management of $257 billion (as
at July 17, 2024), Fidelity
Investments Canada is privately held and committed to helping our
diverse clients meet their goals over the long term. Fidelity funds
are available through financial advisors and online trading
platforms.
Commissions, trailing commissions, management fees, brokerage
fees and expenses may be associated with investments in mutual
funds and ETFs. Please read the mutual fund's or ETF's prospectus,
which contains detailed investment information, before investing.
Mutual funds and ETFs are not guaranteed. Their values change
frequently, and investors may experience a gain or a loss. Past
performance may not be repeated.
Effective July 23, 2024, Fidelity Advantage Ether
ETF™ (FETH or ETF) reduced its management fee from 0.40% to
0.39% and also reduced some of the expenses that are charged to the
ETF. As a result, the ETF's management expense ratio (MER)
will be lower going forward and is estimated to be 0.44% (inclusive
of HST), on an annualized basis. The total expenses of the ETF,
including the management fee, HST, portfolio transaction costs and
expenses, will be reflected in the ETF's management report of fund
performance, posted semi-annually. FETH's MER of 0.44% is the
estimated prospective fee that investors will pay on a go-forward
basis from July 23, 2024. Investors who purchased
FETH units prior to July 23, 2024, paid the higher
FETH MER of 0.95% (as at
March 31, 2024) on those units, but
can also expect to pay the same estimated prospective MER of 0.44%
on a go-forward basis from July 23, 2024.
Effective July 23, 2024, Series B
and F of Fidelity Advantage Ether ETF Fund™ (ETF Fund), which
invests directly in FETH, reduced its management fee from 0.90% to
0.89% (Series B) and from 0.40% to 0.39% (Series F),
respectively. In addition, FETH reduced some of the expenses
that would be reflected in the ETF Fund's management expense ratio
(MER). As a result, the MER for Series B and F will be lower
going forward and is estimated to be 1.12% (Series B) and 0.54%
(Series F), respectively (inclusive of HST), on an annualized
basis. The total expenses of the ETF Fund, including the management
fee, fixed administration fee, HST, portfolio transaction costs and
expenses, will be reflected in the ETF Fund's management report of
fund performance, posted semi-annually.
Fidelity Advantage Ether ETF™ aims to invest in ether. Fidelity
Advantage Ether ETF Fund™ invests in Fidelity Advantage Ether ETF™.
These funds do not speculate with regards to short-term changes in
ether prices. Given the speculative nature of ether and the
volatility of the ether market, there is considerable risk that
these funds will not be able to meet their investment objectives.
An investment in these funds is not intended as a complete
investment program and is appropriate only for investors who have
the capacity to absorb a loss of some or all of their investment.
An investment in these funds is considered high risk.
Fidelity Advantage Ether ETF™ is a trademark of Fidelity
Investments Canada ULC.
About Fidelity Clearing Canada ULC
Fidelity Clearing Canada ULC, a leading provider of custody and
clearing services, provides robust, flexible, and scalable
solutions to registered broker/dealers, portfolio managers and
investment advisors. With $131
billion in assets under administration (as of July 12, 2024), clients rely on Fidelity Clearing
Canada for expertise in technology, trading and clearing, custody
and business transition, which gives them the freedom to focus on
what they do best – helping end investors achieve their financial
goals. Fidelity Clearing Canada was Canada's first Canadian Investment Regulatory
Organization member entity to offer a secure digital asset trading
and custody solution for institutional investors including
investment funds.
Find us on social media @FidelityCanada
www.fidelity.ca
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SOURCE Fidelity Investments Canada ULC