Fidelity Investments to Launch its First ETF Share Classes

Fidelity Investments said on June 15 that it will launch its first ETF share classes, marking a new phase for the firm's exchange-traded product lineup. The three new funds — Fidelity Intermediate Municipal Income ETF (FIMU), Fidelity Real Estate Income ETF (FREI) and Fidelity Short-Term Bond ETF (FSTB) — are expected to begin trading on the Nasdaq Stock Market on June 18, 2026.

The ETF share classes will be attached to existing mutual fund strategies, meaning they will share the same portfolio, track record, investment policies and portfolio management teams as the corresponding mutual funds. Greg Friedman, Fidelity's head of ETFs, said the ETF industry has reached a turning point, with exemptive relief opening the door to more product choice. He added that the strategies' long-term performance history and experienced managers made them well suited for Fidelity's first ETF share classes.

FIMU invests at least 80% of its assets in municipal securities whose interest is exempt from federal income tax, and is managed by Cormac Cullen, Michael Maka and Elizah McLaughlin, who have a combined 26 years of experience. Its estimated gross and net expense ratios are 0.31% and 0.30%, respectively. FREI invests at least 80% of assets in debt and income-producing equity securities of real estate companies, is managed by Bill Maclay with 27 years of experience, and carries estimated gross and net expense ratios of 0.59% and 0.57%. FSTB invests at least 80% in investment-grade debt securities and repurchase agreements; its managers — Dave DeBiase, Robert Galusza and John Mistovich — have a combined 89 years of experience, and the fund's estimated gross and net expense ratios are 0.21% and 0.20%.

Investors who hold shares of the existing mutual fund versions on Fidelity's platform will be able to convert them to the new ETF class on a recurring basis as a non-taxable event. Those investing through third-party intermediaries should contact their intermediary, since conversion availability and timing may vary.

The launch adds to Fidelity's growing ETF platform. The firm said this week's launches bring the total product introductions over the past year to ten. As of May 31, 2026, Fidelity's exchange-traded lineup includes 84 ETFs and ETPs with $172 billion in assets under management, spanning active equity, fixed income, factor, thematic, sector and digital asset products. Earlier, Fidelity added four active Enhanced ETFs: FEMG, FEMV, FSEG and FSEV. Overall, Fidelity's platform offers access to more than 5,000 exchange-traded products, with roughly $2.1 trillion in exchange-traded assets.