FSYD Profile
The Fidelity Sustainable High Yield ETF primarily invests at least 80% of its assets in debt securities rated below investment grade, commonly known as high yield or junk bonds. These securities are issued by companies with lower credit ratings and offer higher yields to compensate for their increased risk. The fund specifically targets those issuers that demonstrate strong or improving sustainability practices, as assessed by Fidelity Management & Research Company LLC (FMR) based on a thorough evaluation of each issuer's environmental, social, and governance (ESG) profile.
The ETF's investment strategy focuses on identifying high yield bonds from issuers that align with rigorous ESG criteria. This involves assessing the sustainability practices of the companies issuing these bonds, ensuring that their operations and governance frameworks contribute positively to environmental and social outcomes. The goal is to invest in bonds from companies that not only offer attractive yields but also adhere to high standards of corporate responsibility and sustainability.
By concentrating on high yield securities with strong ESG credentials, the fund aims to deliver competitive returns while supporting companies that are committed to responsible business practices. This approach helps mitigate some of the risks associated with high yield investments by favoring issuers that are better positioned to manage long-term sustainability challenges. The fund’s focus on ESG factors provides investors with an opportunity to participate in the high yield market while aligning their investments with ethical and sustainable principles.
Managed by Fidelity Investments, the ETF benefits from the firm's extensive expertise in fixed-income and ESG investing. Fidelity's robust research capabilities and in-depth analysis support the fund's dual objectives of achieving high returns and promoting sustainable investment practices. The firm’s commitment to integrating ESG considerations into its investment process ensures that the fund not only seeks attractive financial outcomes but also contributes to broader environmental and social goals.
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