ETFs, which are popular among Australian investors, are set to become more so. The strategy behind this fund is based on demographic trends remaining largely predictable despite a high degree of uncertainty around the globe.

Fidelity International has launched its second actively managed exchange-traded fund for Australian investors.

The ETF version of the firm’s Global Demographics fund, established on 30 November 2012, has now been listed on Australia’s stock exchange under the ticker FDEM. Jointly managed by UK-based Aneta Wynimko, Alex Gold, and Oliver Hextall, the fund holds between 50 and 70 stocks with a suggested investment timeframe of seven years.

“We’re launching this strategy in Australia via a listed structure because Australian investors are becoming increasingly interested in actively managed ETFs,” Alva Devoy (pictured), Fidelity’s managing director, said.

The fund aims to achieve returns in excess of its benchmark, the MSCI All Country World Index NR, over the medium to long term through investing in companies that will grow and benefit from changing demographic trends.

“The globe is still witnessing an overall growth in population, the population is still largely ageing, and the middle class is still growing. These are the three main demographic factors that the fund bases its investments thesis on. Examining key fundamentals of companies through our bottom-up approach and assessing how business models will grow and benefit from demographic changes, provides the core strategy of the fund,” Anthony Doyle, cross asset investment specialist at Fidelity, said.

The asset manager's first active ETF, the Fidelity Global Emerging Markets Fund, was launched in October 2018. With one trade giving investors access to a diversified portfolio of 30 to 50 actively managed emerging market shares, it was the firm’s first active ETF in the Asia-Pacific region. 

ETFs are rising in popularity in Australia. The number of Australians invested in ETFs rose by 33 per cent to 1.73 million this year, with the market expected to add another 275,000 consumers next year, according to researcher Investment Trends.

With $740 billion in total assets, Fidelity International has 2.5 million customers and operates in 25 countries.