Envestnet Asset Management Inc. boosted its stake in Fidelity Quality Factor ETF (NYSEARCA:FQAL – Get Rating) by 48.3% in the first quarter, HoldingsChannel reports. The firm owned 506,654 shares of the company’s stock after acquiring an additional 164,975 shares during the period. Envestnet Asset Management Inc. owned approximately 0.09% of Fidelity Quality Factor ETF worth $26,483,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other large investors have also added to or reduced their stakes in FQAL. Blueprint Investment Partners LLC bought a new stake in Fidelity Quality Factor ETF in the 4th quarter worth approximately $10,627,000. Kestra Advisory Services LLC grew its position in shares of Fidelity Quality Factor ETF by 74.8% during the 1st quarter.
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Asset management fidelity files for etfal
A new filing with the U.S. Securities and Exchange Commission indicates that asset management giant Fidelity is seeking to create a bitcoin exchange-traded fund (ETF).
The Wise Origin Bitcoin ETF is the latest entrant in a growing race to launch a bitcoin exchange-traded product in the United States. According to the filing, a firm called FD Funds Management LLC is the sponsor of the fund, with Fidelity Service Company, Inc. serving as administrator. Per the document, FD Funds Management LLC shares the same Boston, MA address as Fidelity’s office.
Fidelity Digital Assets, the asset manager’s crypto-focused arm, will serve as custodian.
Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents.
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The Fidelity model does this by publishing a proxy portfolio consisting of some actual portfolio holdings, cash, and representative ETFs that hold securities similar to those held by the ETF.
According to Fidelity, by using diversified ETFs instead of individual stocks within the proxy portfolio, the model is better able to shield the manager’s intellectual property from front-runners.
Fidelity publishes the percentage weight overlap between the holdings of the ETF and its proxy portfolio on a daily basis, helping investors understand how similar the tracking basket is to the fund’s actual holdings.
The proxy portfolio is optimized to closely track the ETF’s performance, thereby providing enough information to effectively price and trade fund shares throughout the day.
Fidelity’s in-house bitcoin price index, per the filing.
“The Trust’s investment objective is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR (the “Index”), adjusted for the Trust’s expenses and other liabilities,” the filing notes, explaining elsewhere:
“The Trust provides direct exposure to bitcoin, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from a bitcoin spot market, or mining it.”
The fund’s name is similar to the Wise Origin Bitcoin Index Fund I, launched in August 2020 by Fidelity.
While there is no guarantee, the differences usually consist of a small fraction of a percentage of holdings in cash or an individual component.
ETF basket and holdings differences
The holdings in an ETF portfolio originate through what are known as “redemption and creation baskets.” Unlike mutual funds, ETFs do not necessarily have to sell individual securities in order to meet shareholder redemption requests. Through a process known as “create and redeem,” ETFs can use an authorized participant to act as a clearinghouse to facilitate shareholder redemption requests.
ETF shares are created when an authorized participant deposits a portfolio of stocks into the fund in exchange for an institutional block of ETF shares (anywhere from 25,000 to 600,000). This is referred to as “in kind” creation because a basket of stocks is exchanged for ETF shares rather than using cash.
Envestnet Asset Management Inc. grew its stake in Fidelity MSCI Energy Index ETF (NYSEARCA:FENY – Get Rating) by 30.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,244,119 shares of the company’s stock after purchasing an additional 291,051 shares during the quarter.
Envestnet Asset Management Inc. owned approximately 1.74% of Fidelity MSCI Energy Index ETF worth $26,052,000 as of its most recent SEC filing.
Other institutional investors have also modified their holdings of the company. Exencial Wealth Advisors LLC acquired a new stake in shares of Fidelity MSCI Energy Index ETF in the fourth quarter valued at about $171,000. Charter Oak Capital Management LLC grew its position in shares of Fidelity MSCI Energy Index ETF by 19.6% in the fourth quarter.
Investment management behemoth Fidelity has submitted an application for an exchange-traded fund (ETF) that would monitor the performance of public firms that are developing and marketing products for the metaverse.
According to the filing submitted on January 27, the Fidelity Metaverse ETF will track the Fidelity Metaverse Index, which tracks “the performance of a global universe of companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.”
Fidelity’s application is the latest in a long line of corporations attempting to capitalize on the growing interest in the metaverse.
One of the appeals of exchange-traded funds (ETFs) is that they can be highly transparent investment vehicles. This makes it easier for investors to target a particular asset class, geographic region, or sector, without worrying whether the fund manager may be investing in securities outside the fund’s mandate, a phenomenon known as “style drift.”
The ETF holdings provided on Fidelity.com give you a comprehensive overview of each portfolio’s composition, which may help you make informed investment decisions and compare each ETF’s objective to the characteristics of its underlying holdings.
ETF portfolio composition data
Fidelity provides different levels of data for each ETF that can be traded on Fidelity.com.