Fidelity AAA CLO ETF (FAAA)

The Fidelity AAA CLO ETF (FAAA) is an actively managed fixed income fund from Fidelity Investments. It seeks a high level of current income consistent with preservation of capital.

The fund invests primarily in AAA-rated debt tranches of collateralized loan obligations (CLOs). CLOs are securitized pools of senior secured loans made to corporations, and the AAA tranches sit at the top of the payment structure, giving them the most protection against losses in the underlying loans.

Because CLO debt pays floating-rate coupons, the fund's income tends to adjust with short-term interest rates and its sensitivity to rate changes is low. Fidelity's analysts evaluate individual CLOs and their managers when selecting holdings.