Fidelity Sustainable Core Plus Bond ETF (FSBD)

Overview

The Fidelity Sustainable Core Plus Bond ETF (FITB) seeks to provide a high level of current income consistent with prudent risk by investing in a diversified portfolio of investment-grade and high-yield fixed income securities, while also considering environmental, social, and governance (ESG) factors.

Reputation and Reliability

Fidelity is a well-established and reputable financial services company with a long track record of managing investment products.

Management Expertise

Fidelity has a dedicated team of experienced fixed income portfolio managers with expertise in credit analysis, ESG integration, and macroeconomic forecasting.

Goal

To provide a high level of current income consistent with prudent risk, while considering ESG factors.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but employs an active management strategy.

Composition The ETF holds a diversified portfolio of U.S. dollar-denominated investment-grade and high-yield corporate bonds, U.S. government and agency securities, mortgage-backed securities, and asset-backed securities.

Market Share: Data unavailable as market share is highly fragmented across all bond ETFs.

Total Net Assets (AUM): 35630000

Key Competitors

• AGG
• BND
• IUSB

Competitive Landscape

The competitive landscape for bond ETFs is crowded. FITB distinguishes itself with its focus on sustainable investing, while AGG, BND, and IUSB provide broad market exposure. FITB's active management can be an advantage or disadvantage depending on the manager's skill. FITB's small AUM might pose liquidity risks compared to its competitors.

Historical Performance: Historical performance data is limited due to the ETF's relatively recent inception. Investors should consult the fund's factsheet or prospectus for the most up-to-date information.

Benchmark Comparison: Performance will be benchmarked against a broad market bond index and potentially a sustainable bond index.

Expense Ratio: 0.36

Average Trading Volume

The average daily trading volume of FITB is relatively low, indicating lower liquidity compared to more established bond ETFs.

Bid-Ask Spread

The bid-ask spread may be wider than more liquid bond ETFs, potentially increasing trading costs.

Market Environment Factors

Interest rate changes, credit spreads, and economic growth can all affect FITB's performance. ESG factors and investor sentiment can influence demand for sustainable bonds.

Growth Trajectory

FITB's growth will depend on investor demand for sustainable investing and its ability to outperform its benchmark net of fees. Fidelity may make adjustments to its security selections and ESG integration strategy.

Competitive Edge

FITB's competitive edge lies in its focus on sustainable investing and active management approach. This combination may appeal to investors seeking both financial returns and positive environmental and social impact. Fidelity's expertise in fixed income and ESG integration could also provide an advantage over passively managed sustainable bond ETFs. However, active management also carries the risk of underperformance.

Volatility

FITB's volatility is expected to be similar to other core plus bond ETFs, influenced by interest rate sensitivity and credit risk.

Market Risk

FITB is subject to market risk, including interest rate risk, credit risk, and inflation risk. ESG-related risks may also be present depending on the specific ESG criteria used by the fund.

Ideal Investor Profile

The ideal investor for FITB is one seeking a diversified fixed income allocation with a focus on sustainable investing.

Market Risk

FITB is suitable for long-term investors seeking income and potential capital appreciation, who are comfortable with the risks associated with active management and ESG integration.

The Fidelity Sustainable Core Plus Bond ETF offers investors a chance to invest in a diversified portfolio of bonds while promoting sustainability. As an actively managed fund, FITB allows for the potential for higher returns compared to passively managed funds, however, there is also a risk of underperformance. It's important to consider FITB's risks, liquidity, and expense ratio when making an investment decision. Investors who prioritize ESG factors and are comfortable with active management may find FITB a suitable addition to their fixed-income portfolio.

Data Sources:

• Fidelity Investments Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share data may vary depending on the source and methodology used.