Fund management company Fidelity launched six new exchange-traded funds (ETFs) a year in order to capitalise on the unprecedented flow of money to cheaper, index-based products. Where the company once resisted bulking up in ETFs, it now risks losing customers if it fails to offer this service, head of ETF 's asset management business, Abigail Johnson said. Despite aggressive growth in the market, Fidelity has just $ 5bn of Fidelity assets under management, compared with $ 254.6bn handled by outside firms that sell ETFs on the company's platform.
Fund management company Fidelity launched six new exchange-traded funds (ETFs) last year in order to capitalise on the unprecedented flow of money to cheaper, index-based products. Where the company once resisted bulking up in ETFs, it now risks losing customers if it fails to offer this service, head of Fidelity's asset management business, Charles Morrison said. Despite aggressive growth in the market, Fidelity has just $5bn of ETF assets under management, compared with $254.6bn handled by outside firms that sell ETFs on the company's platform.