Actively managed ETFs are a brand-new type of ETF offered by Fidelity and the industry. Join Vice President Adina Taylor and Portfolio Manager Sonu Kalra for an in-depth look at active ETFs and why you might be interested in investing in them. During the hour-long webinar, we will discuss the following and more:
- Benefits and advantages of active ETFs
- The differences between active and passive ETFs
- How active ETFs and active mutual funds are managed
- Where to research and find these funds
NOTE: These ETFs are different from traditional ETFs. This may create additional risk for your investment. Read about these risks below and at Fidelity.com/ActiveETFRisks.
The objective of the actively managed ETF tracking basket is to construct a portfolio of stocks and representative index ETFs that tracks the daily performance of an actively managed ETF without exposing current holdings, trading activities, or internal equity research.The tracking basket is designed to conceal any non-public information about the underlying portfolio and only uses the Fund’s latest publicly disclosed holdings, representative ETFs, and the publicly known daily performance in its construction.You can gain access to the Tracking Basket and the Tracking Basket Weight overlap on Fidelity.com or i.fidelity.com.
Although the Tracking Basket is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the Fund at or close to the underlying NAV per Share of the Fund, there is a risk (which may increase during periods of market disruption or volatility) that market prices will vary significantly from the underlying NAV of the Fund; ETFs trading on the basis of a published Tracking Basket may trade at a wider bid/ask spread than ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and therefore, may cost investors more to trade, and although the Fund seeks to benefit from keeping its portfolio information secret, market participants may attempt to use the Tracking Basket to identify a Fund’s trading strategy, which if successful, could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Fund and its shareholders.
Because shares are traded in the secondary market, a broker may charge a commission to execute a transaction in shares, and an investor may incur the cost of the spread between the price at which a dealer will buy shares and the price at which a dealer will sell shares.