Fidelity Investments Canada reduces fees on Fidelity Advantage Ether ETF™

With continued strong momentum in 2024, Fidelity ETF business increases its competitive crypto offering 

TORONTO, July 23, 2024 /CNW/ - Fidelity Investments Canada ULC (Fidelity) is announcing a reduction in the management fee of Fidelity Advantage Ether ETF™ (FETH-T) to 0.39% with an estimated prospective management expense ratio (MER) of 0.44% (inclusive of estimated HST), effective July 23, 2024. This marks a significant reduction from the ETF's existing MER of 0.95% (as at March 31, 2024).  This reduction will also be passed along to Fidelity Advantage Ether ETF Fund™, which invests directly in the ETF.

This reduction builds on Fidelity's previous reduction of fees on Fidelity Advantage Bitcoin ETF® in January 2024.

Since launching its ETF business in September 2018, Fidelity ETF assets under management have grown to approximately $7.5B, with $2.6B in record net creations year-to-date (as at June 30, 2024). Assets for Fidelity All-in-One ETFs have increased from $962M (as at December 31, 2023) to $2.4B (as at June 30, 2024).

With a mission to help build better futures for investors, Fidelity has expanded its ETF offerings to 51 investment strategies across asset classes, providing investors choice and access to a wide range of investment strategies supported by the global strength and scale of the broader Fidelity Investments organizations.

From Fidelity's All-in-One ETFs to Factor ETFs, and Active ETFs to Digital Asset ETFs, Fidelity's ETF line up is actively evolving and under regular review to help meet investor and marketplace demands.

Fidelity Advantage Ether ETF™ and other digital asset strategies are custodied by Fidelity Clearing Canada ULC's institutional grade clearing and custody platform. Leveraging Fidelity Investments' early exploration and global expertise and leadership in the blockchain and digital assets space, this platform incorporates vaulted cold storage, physical, cyber and operational controls, and multi-level innovative safeguards.

How does it work and why Fidelity Advantage Ether ETF™ and Fidelity Advantage Ether ETF Fund™?

There are several reasons why investors may wish to invest in these funds instead of purchasing and storing cryptocurrencies directly.

• How It Works - The investment objective of Fidelity Advantage Ether ETF™ is to invest in ether. Fidelity Advantage Ether ETF Fund™ invests in the ETF. When an investor purchases the ETF, they will own units of the ETF, which in turn owns physical ether. The price of units will go up and down directly in relation to the price of ether.
  
  
• Fidelity Security Features - Fidelity Advantage Ether ETF™ custodies ether through Fidelity Clearing Canada. The physical ether that the ETF owns is stored using an institutional-grade custodial model, offering the ETF access to the trading and custody of digital assets in a safe and secure way.
  
  
• Tax Efficiency and Liquidity - Like all Fidelity ETFs and corresponding mutual fund versions, the ether funds are eligible for tax-advantaged registered accounts. Similar to purchasing a stock on the exchange, investors can invest in Fidelity Advantage Ether ETF™ the same way they invest in other ETFs, by purchasing ETF units on the TSX.

For more information, please visit www.fidelity.ca 

About Fidelity Investments Canada ULC

At Fidelity Investments Canada, our mission is to build a better future for our clients. Our diversified business serves financial advisors, wealth management firms, employers, institutions and individuals. As the marketplace evolves, we are constantly innovating and offering our clients choice of investment and wealth management products, services and technological solutions all backed by the global strength and scale of Fidelity. With assets under management of $257 billion (as at July 17, 2024), Fidelity Investments Canada is privately held and committed to helping our diverse clients meet their goals over the long term. Fidelity funds are available through financial advisors and online trading platforms.

Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund's or ETF's prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.

Effective July 23, 2024, Fidelity Advantage Ether ETF™ (FETH or ETF) reduced its management fee from 0.40% to 0.39% and also reduced some of the expenses that are charged to the ETF.  As a result, the ETF's management expense ratio (MER) will be lower going forward and is estimated to be 0.44% (inclusive of HST), on an annualized basis. The total expenses of the ETF, including the management fee, HST, portfolio transaction costs and expenses, will be reflected in the ETF's management report of fund performance, posted semi-annually.  FETH's MER of 0.44% is the estimated prospective fee that investors will pay on a go-forward basis from July 23, 2024.  Investors who purchased FETH units prior to July 23, 2024, paid the higher FETH MER of 0.95% (as at March 31, 2024) on those units, but can also expect to pay the same estimated prospective MER of 0.44% on a go-forward basis from July 23, 2024.  

Effective July 23, 2024, Series B and F of Fidelity Advantage Ether ETF Fund™ (ETF Fund), which invests directly in FETH, reduced its management fee from 0.90% to 0.89% (Series B) and from 0.40% to 0.39% (Series F), respectively.  In addition, FETH reduced some of the expenses that would be reflected in the ETF Fund's management expense ratio (MER).  As a result, the MER for Series B and F will be lower going forward and is estimated to be 1.12% (Series B) and 0.54% (Series F), respectively (inclusive of HST), on an annualized basis. The total expenses of the ETF Fund, including the management fee, fixed administration fee, HST, portfolio transaction costs and expenses, will be reflected in the ETF Fund's management report of fund performance, posted semi-annually. 

Fidelity Advantage Ether ETF™ aims to invest in ether. Fidelity Advantage Ether ETF Fund™ invests in Fidelity Advantage Ether ETF™. These funds do not speculate with regards to short-term changes in ether prices. Given the speculative nature of ether and the volatility of the ether market, there is considerable risk that these funds will not be able to meet their investment objectives. An investment in these funds is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. An investment in these funds is considered high risk. 

Fidelity Advantage Ether ETF™ is a trademark of Fidelity Investments Canada ULC. 

About Fidelity Clearing Canada ULC

Fidelity Clearing Canada ULC, a leading provider of custody and clearing services, provides robust, flexible, and scalable solutions to registered broker/dealers, portfolio managers and investment advisors. With $131 billion in assets under administration (as of July 12, 2024), clients rely on Fidelity Clearing Canada for expertise in technology, trading and clearing, custody and business transition, which gives them the freedom to focus on what they do best – helping end investors achieve their financial goals. Fidelity Clearing Canada was Canada's first Canadian Investment Regulatory Organization member entity to offer a secure digital asset trading and custody solution for institutional investors including investment funds.  

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SOURCE Fidelity Investments Canada ULC

For more information, please contact: Chris Pepper, Vice-President, Corporate Affairs, Fidelity Investments Canada ULC, M: [phone], E: [email protected]