2025-06252Notice

NYSE Updates Rules for Feminist and Green ETFs

Published Date: 4/14/2025

Notice

Summary

NYSE Arca just updated the rules for two special ETFs: the Fidelity Women's Leadership ETF and the Fidelity Sustainability U.S. Equity ETF. This change reflects a recent amendment to how these funds operate and trade on the exchange, making sure everything stays clear and up-to-date. Investors in these ETFs can keep trading as usual with no delays or extra costs.

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Funds Allowed New Investment Types

If you own shares of the Fidelity Women's Leadership ETF or the Fidelity Sustainability U.S. Equity ETF, the funds may now invest in additional types of instruments called "Amended Order Investments," including fixed income securities, foreign investments that do not trade at the same time as the ETFs' shares, and derivatives. The Applicants sought these changes beginning July 30, 2024, and the Commission issued an amended exemptive order on March 31, 2025, that permits these additional investments.

Two-Sleeve Structure and Daily Disclosure

If you hold these ETFs, each fund will use two sleeves: a "Semi-Transparent Sleeve" invested in the prior permitted instruments and a "Fully-Transparent Sleeve" invested in the new Amended Order Investments. The Amended Exemptive Order dated March 31, 2025 requires that all Amended Order Investments be publicly disclosed daily in the Fully-Transparent Sleeve and that the fund publish a Tracking Basket showing the two portions and their ratios tied to the fund's holdings.

Rule Change Effective Immediately Upon Filing

The Exchange filed the proposed rule change on April 4, 2025, and the SEC waived the normal 30-day operative delay and designated the change operative upon filing. That means the amendment reflecting the March 31, 2025 Amended Exemptive Order became effective immediately after the April 4, 2025 filing.

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Key Dates

Effective Date
Published Date
4/4/2025
4/14/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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