FSST Profile
The Fidelity Sustainable U.S. Equity ETF is an investment vehicle aimed at providing exposure to U.S. companies with strong or improving sustainability practices. Under normal market conditions, the fund allocates at least 80% of its assets to equity securities of U.S. companies that Fidelity Management & Research Company LLC (FMR) identifies as having notable environmental, social, and governance (ESG) credentials. This approach aligns the fund's investment strategy with its commitment to sustainable and responsible investing, focusing on firms that demonstrate leadership in addressing ESG factors.
The fund’s investment process involves a thorough evaluation of companies' ESG profiles, assessing their practices related to environmental stewardship, social responsibility, and governance structures. By selecting firms that excel in these areas or show significant improvement, the fund aims to build a portfolio that not only seeks financial returns but also supports broader social and environmental objectives. This ESG-centric approach is designed to meet the growing demand among investors for socially responsible investment options that align with personal values and long-term sustainability goals.
The Fidelity Sustainable U.S. Equity ETF invests primarily in equity securities of U.S. companies but may also include securities of foreign issuers. This flexibility allows the fund to diversify its holdings beyond the U.S. market, potentially enhancing its risk-return profile by capturing opportunities in global markets that meet the fund’s sustainability criteria. The fund’s non-diversified nature means that it may concentrate its investments in a smaller number of securities or sectors, which can lead to higher potential returns but also increased risk compared to more broadly diversified funds.
Active management plays a crucial role in the fund’s strategy, with FMR's team conducting detailed research and analysis to select companies that meet its sustainability standards. Investors in the Fidelity Sustainable U.S. Equity ETF should be aware that the fund’s focus on ESG factors and its non-diversified nature may impact its performance and risk profile. As such, it is suited for those who prioritize sustainability in their investment decisions and are comfortable with the potential volatility associated with a concentrated investment approach in the pursuit of socially responsible outcomes.
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