FTBD Profile
The Fidelity Tactical Bond ETF is an actively managed fund that seeks to provide total return through a dynamic allocation across various segments of the fixed income market. The fund invests at least 80% of its assets in a broad array of debt securities, including government bonds, corporate bonds, mortgage-backed securities, and repurchase agreements. This broad investment mandate allows the fund to access a wide range of income-generating assets, providing flexibility to adapt to changing market conditions and interest rate environments.
The fund's investment strategy encompasses both investment-grade and high-yield (or "junk") bonds, as well as debt securities from emerging markets. This diverse approach aims to capture opportunities across different credit qualities and economic conditions. By investing across various sectors and credit ratings, the fund seeks to balance potential returns with associated risks, striving for a total return that exceeds traditional fixed income benchmarks.
In addition to U.S. dollar-denominated securities, the fund also invests in non-U.S. dollar-denominated debt. To manage currency risk associated with international investments, the fund employs forward foreign currency exchange contracts. These hedging strategies are used to mitigate the impact of fluctuations in foreign exchange rates, thereby protecting the fund's returns from adverse currency movements and stabilizing its overall performance.
The Fidelity Tactical Bond ETF's approach to bond investing is characterized by its tactical flexibility and broad market coverage. The fund's active management style allows it to adjust its portfolio allocation based on prevailing market conditions, economic outlooks, and interest rate expectations. This adaptability is designed to capitalize on short-term market opportunities and manage risks effectively, making the fund suitable for investors seeking a comprehensive bond strategy with the potential for enhanced returns and diversified exposure across the global fixed income landscape.
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