Fidelity Investments is introducing three new actively managed,fixed-income exchange-traded funds to the market.

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While the Boston-based investment firm has been in the ETFmarket for 10 years, the latest offerings – The Fidelity Total BondETF, Limited Term Bond ETF, and Corporate Bond ETF – are the firm’sfirst actively managed, fixed-income ETFs.

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“While active ETFs are still in their infancy, we are seeingincreased demand and believe that the market is ready for morechoice in the active approaches offered through the ETF structure,”said Scott Couto, president of Fidelity Financial AdvisorSolutions.

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Fidelity currently manages $865 billion in fixed-income assets. It also manages $175 billion in ETF assets.

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Actively managed ETFs only represent about 1 percent of all ETFassets, with about $17 billion in assets under management. Most ofthose actively managed funds — 76 percent — are in fixed-incomeproducts.

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In February of 2012, Pimco rolled out its Total Return ETF, anactively managed fixed-income ETF that had been managed by firmfounder Bill Gross, until his recent departure.

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Pimco’s Total Return ETF is the largest actively managedfixed-income ETF, with about $3.6 billion in assets.

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An SEC investigation into whether Pimco has overstated TotalReturn ETF returns is reportedly gaining momentum, according toreporting in ThinkAdvisor, BenefitPro’s sisterpublication.

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Fidelity’s three new actively managed fixed-income ETFs willhave an expense ratio of 45 basis points, according to a companynews release.

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In 2013, the average expense ratio for actively managed bondETFs was 51 basis points, according to Lipper Inc.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.