Fidelity Seeks SEC Approval to Start Its First Smart-Beta ETF
- Firm applies to make funds based on proprietary indexes
- Fidelity's self-indexing ETF would select value stocks
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Fidelity Investments is seeking permission to offer exchange traded funds that track customized indexes, providing the firm with an entree into the fastest growing sector of the ETF market.
The Boston-based fund manager filed an application with the U.S. Securities and Exchange Commission on Friday to offer what are known as self-indexing ETFs. These funds follow a proprietary index developed by the manager instead of tracking an outside benchmark, such as the Standard & Poor’s 500 Index.