FSEC Profile
The Fidelity Investment Grade Securitized ETF is an actively managed fund focused on providing income and capital preservation through investments in high-quality securitized debt securities. Under normal market conditions, the fund allocates at least 80% of its assets to investment-grade securitized debt, which includes securities with medium to high credit quality ratings. This encompasses a broad spectrum of debt instruments backed by assets, such as mortgage-backed securities (MBS), asset-backed securities (ABS), and collateralized loan obligations (CLOs). The fund also invests in repurchase agreements related to these securities, enhancing its ability to generate income and manage liquidity.
The ETF’s investment strategy targets securitized debt securities issued by various entities, including U.S. government agencies and instrumentalities, foreign governments, and corporations. This includes securities issued by U.S. government-sponsored enterprises (GSEs) that are chartered or sponsored by Congress, though they are not directly issued or guaranteed by the U.S. Treasury. By focusing on high-quality, investment-grade securities, the fund aims to provide stability and reduce credit risk while pursuing income generation.
In addition to investing in U.S. government-backed and corporate securitized debt, the fund may hold securities from other governmental and international sources, offering a diversified approach within the realm of investment-grade assets. The strategic selection of these securities is based on rigorous credit analysis and market assessments to ensure alignment with the fund's investment objectives of stability and income.
The Fidelity Investment Grade Securitized ETF's emphasis on investment-grade securities reflects its commitment to quality and risk management. By concentrating on medium and high-quality debt securities, the fund seeks to offer a lower-risk investment option within the securitized debt market. Investors should consider this focus in the context of their overall investment strategy, especially if they are seeking stable income and capital preservation through high-quality, securitized debt instruments.
|
