FSBD Profile
The Fidelity Sustainable Core Plus Bond ETF primarily invests at least 80% of its assets in debt securities that are assessed to have positive environmental, social, and governance (ESG) attributes. This focus on ESG criteria aims to align the fund’s investments with sustainable and ethical principles, reflecting a commitment to responsible investing. The fund may also include repurchase agreements related to these securities to manage liquidity and enhance returns.
The ETF’s investment strategy encompasses a diverse range of debt instruments, including those issued by both domestic and international entities. This broad scope allows the fund to tap into various fixed-income opportunities across global markets while adhering to its ESG-focused mandate. The selection process emphasizes bonds that meet stringent sustainability criteria, targeting issuers that demonstrate strong ESG performance and contribute positively to societal and environmental goals.
The fund is permitted to allocate up to 20% of its assets to lower-quality debt securities, often referred to as high-yield or junk bonds. These securities are rated below investment grade and generally offer higher yields to compensate for increased risk. By including these higher-risk investments, the ETF seeks to enhance potential returns while balancing the overall risk profile of the portfolio.
Managed by Fidelity Investments, the ETF benefits from the firm’s extensive expertise in bond investing and ESG integration. Fidelity’s rigorous research and analysis support the fund’s dual objectives of achieving competitive returns and promoting sustainable investment practices. The firm’s commitment to responsible investing is reflected in the careful selection of securities that align with both financial performance and ESG principles, providing investors with a robust and conscientious fixed-income investment vehicle.
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