Asset manager Fidelity has added to its range of exchange traded funds (ETFs) tracking high-quality income stocks with the launch of Fidelity Europe Quality Income UCITS ETF (FEQD) and Fidelity Emerging Markets Quality Income UCITS ETF (FEMI). The smart beta ETFs will track Fidelity indices made up of high dividend-paying stocks and launch on the London Stock Exchange (LSE) on 1 November 2017.
The stocks included in the indices these ETFs will track are weighted according to profitability, strong cash flows and dividends, and designed to deliver higher yields than mainstream indices. This is similar to the criteria for the indices tracked by Fidelity US Quality Income UCITS ETF (FUSA) and Fidelity Global Quality Income UCITS ETF (FGQI), which launched earlier this year.
Fidelity Europe Quality Income UCITS ETF will have an ongoing charge of 0.3 per cent and Fidelity Emerging Markets Quality Income UCITS ETF will cost 0.5 per cent.