FSLD Profile
The Fidelity Sustainable Low Duration Bond ETF primarily invests at least 80% of its assets in investment-grade debt securities, which are characterized by medium to high credit quality. The fund emphasizes securities that meet positive environmental, social, and governance (ESG) criteria, ensuring that its investments align with sustainability and ethical standards. Additionally, the fund may include repurchase agreements related to these debt securities to optimize liquidity and returns.
The ETF targets a dollar-weighted average maturity of two years or less, reflecting a low-duration strategy. This approach aims to mitigate interest rate risk by investing in shorter-term securities, which are less sensitive to fluctuations in interest rates compared to longer-duration bonds. The fund's focus on shorter maturities helps to provide stability and reduce potential volatility in changing interest rate environments.
The fund allocates its assets across various market sectors and maturities, offering diversification within the investment-grade bond universe. This diversified approach allows the fund to manage risk while seeking opportunities across different sectors and durations. The balance between sector exposure and maturity profiles contributes to a well-rounded fixed-income portfolio that adheres to the fund's sustainability objectives.
Managed by Fidelity Investments, the ETF benefits from the firm’s extensive expertise in fixed-income investing and ESG integration. Fidelity's rigorous research and analytical capabilities support the fund's dual focus on achieving stable returns and adhering to responsible investment practices. The firm's commitment to sustainability and financial performance is reflected in its careful selection of bonds that meet high ESG standards while maintaining a conservative duration profile, providing investors with a reliable and conscientious investment solution.
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