Introduction and important information about using the Select ETF list
The Select ETF list is a pick list of our recommended ETFs that represent commonly used investment exposures and that we have selected based on a range of selection criteria set out below. The Select ETF list is, therefore, not a personal recommendation and so you must decide whether any investments on the list might be right for you. If you are unsure about the suitability of an investment, we strongly recommend that you should speak to an authorised financial adviser. Remember that the value of investments can go down as well as up so you may get back less than you invested.
Select ETF selection process and information about individual investments
The Select ETF list has been picked by the experts in our ETF and Multi Asset teams. Our selection process is based on a range of criteria (summarised below) based on commonly used investment exposures and, when appropriate, that we feel are most likely to replicate the relevant index after all costs.
The key selection criteria include:
Only products that meet our Platform’s trading criteria are considered - this means they must be:
- Registered in the UK
- Trading in GBP on the London Stock Exchange
- 'Physically replicating’ i.e. based on held securities to replicate the index rather than derivatives.
Eight categories make up the selection list:
- North America
- Europe (excluding UK)
- Asia and Emerging Markets (excluding Japan)
Qualitative metrics used for selection purposes
These metrics include:
- OCF (ongoing charges figure)
- Spread (based on a 3-year holding period)
- Tracking difference/error
- AUM (Assets Under Management)
- Trading volumes
- Share price.
A range of factual source data is used to analyse and then create the Select ETF List using Fidelity and third party systems and information using reliable market based data. The shortlist of ETFs is then scrutinised by our experts who apply their value judgement to make the final selections where multiple investment options are available.
You can view detailed information about each of the Select ETF investments via the latest individual factsheet which can be found on our Select ETF webpage. Factsheets are updated regularly and they contain current performance and valuation metrics, as well as key statistics to help investors make their own investment decisions.
Select ETF review process
The Select ETF list will be reviewed at least annually, although changes to the Select ETF list may be made at any time. Details of any investments either added to or removed from the Select ETF list in the last 12 months will be shown on our Select ETF web page.
Changes to the Select ETF list can occur for a variety of reasons. Our expert analysts may have changed their view of an investment. Alternatively, its benefits to customers may have become more or less attractive relative to the other assets in its category.
You should not consider the addition or removal of an investment from the ETF Select List as a reason to buy or sell respectively or of its overall performance merits or otherwise. Remember that the list is not a personal recommendation and so you must decide what investments you wish to hold.
Conflicts of interest
Fidelity operates a range of controls to minimise potential risks from conflicts that might arise. Within the Select ETF list, there may be funds provided by Fidelity when they have met the selection criteria. These funds will always be clearly identifiable as ‘Fidelity’ will appear in the fund name.
More information about our Conflicts of Interest policy is available within our Client Terms.