Fidelity and BlackRock launch ETF managed account product
Fidelity Investments and BlackRock have launched the BlackRock Diversified Income Portfolio, an ETF managed account designed to address the challenges and risks investors may face when looking for income in today’s marketplace.
The managed account will be available exclusively to all eligible retail investors through Fidelity’s managed accounts service beginning 1 May.
It is a multi-asset income solution composed primarily of ETFs and uses a tactical, go-anywhere approach that seeks to provide exposure to attractive income opportunities across asset classes, sectors, and regions around the world while carefully balancing the trade-offs between risk and yield.
Fidelity will offer the BlackRock Diversified Income Portfolio, with BlackRock Investment Management as the portfolio strategist and Fidelity’s Strategic Advisers as the investment advisor.
“Investors have significantly benefitted from this unprecedented partnership between industry leaders Fidelity and BlackRock,” says Kathleen A. Murphy, president of personal investing at Fidelity Investments. “The extremely strong investor and advisor demand for our innovative ETF products and the introduction of the BlackRock Diversified Income Portfolio are just two examples of the power of this partnership.”
Last March Fidelity and BlackRock expanded the number of iShares ETFs that can be purchased commission-free through Fidelity from 30 to 65. Over the last year, Fidelity customers increased their investments by nearly 90 per cent into these 65 ETFs compared to the previous year, and compared to a flat growth rate in the US ETF industry. Also during this time, the number of Fidelity accounts holding iShares ETFs grew 16 per cent.
“Last year we doubled down on our partnership with Fidelity and we are thrilled with the results," says Mark Wiedman, global head of iShares at BlackRock. “The outsized growth we've seen in our commission-free iShares ETFs, coupled with the increase in Fidelity accounts holding our funds, speaks volumes to how our growing partnership is resonating with the millions of investors who are turning to iShares ETFs for their long-term holdings.”
Last October, Fidelity expanded its sector investing platform and launched 10 passive sector ETFs, sub-advised by BlackRock, that offer the lowest expense ratio for sector ETFs in the industry at 0.12 per cent. The 10 ETFs provide advisors and investors additional ways to diversify portfolios, generate alpha through asset allocation and to manage risk.
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