Fidelity launches first ETF share classes for mutual funds, expanding investor options and tax benefits.

Fidelity Investments has introduced its first ETF share classes for three of its mutual funds, marking a significant step in the asset management industry. The new ETFs launched on June 18, 2026, include the Fidelity Intermediate Municipal Income ETF, Fidelity Real Estate Income ETF, and Fidelity Short-Term Bond ETF. This move allows investors to benefit from the ETF structure, such as potential tax advantages and greater transparency, while maintaining exposure to Fidelity's fixed income strategies. Investors can also convert mutual fund shares directly into ETF shares, signaling a broader shift toward active ETFs and potentially encouraging other firms to follow Fidelity's lead.