Fidelity International has added to its active fixed income exchange-traded fund range with the launch of the Fidelity USD Corporate Bond Research Enhanced UCITS ETF (FBIU) and the Fidelity EUR Corporate Bond Research Enhanced UCITS ETF (FBIE).
The ETFs will initially charge a total expense ratio (TER) of 0.03%, or three basis points, for six months, before increasing to 0.19%, or 0.24% for a euro-hedged share class.
They have both begun trading on the London Stock Exchange (LSE), Deutsche Borse and Borsa Italiana supported by $20m seed capital from market maker Susquehanna.
Benchmarked to their respective Bloomberg indices FBIU and FBIE will aim for modest outperformance through active stock selection.
Classified as Article 8 funds under the Sustainable Finance Disclosure Regulation (SFDR), they will use an ESG screen to beat their benchmarks on environmental impact scores.
Neil Davies, head of ETF product and capital markets for Europe and Asia Pacific at Fidelity International, said: “Our new ETFs reflect how investors are increasingly accessing fixed income today – using active ETFs for flexibility, transparency and cost-efficient implementation, while increasing allocations to fixed income for income, diversification and portfolio stability.”
Our view
David Batchelor, senior analyst at QuotedData, said: “The steady flow of new fixed income active ETF launches continues. Fidelity’s market share of the overall European active ETF market at the end of 2025 was 10%, and it is little surprise that it is adding to its fixed income offering with these two funds. The teaser fee rate of 3 bps for the first six-months is certainly eye-catching, and as low as the very largest passive funds – and hints at the competitiveness in this part of the market. The fee will increase to a more usual 19 bps after six months.”
