Fidelity files for two new active investment grade fixed income ETFs

Fidelity® Investment Grade Bond ETF
Fidelity® Investment Grade Securitized ETF

Effective date: February 24, 2021

Prospectus is here.






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Fidelity® Investment Grade Bond ETF

Ticker: FIGB

Investment Objective
The fund seeks a high level of current income.

Principal Investment Strategies

• Normally investing at least 80% of assets in investment-grade debt securities (those of medium and high quality) of all types and repurchase agreements for those securities.

• Managing the fund to have similar overall interest rate risk to the Bloomberg Barclays U.S. Aggregate Bond Index.

• Allocating assets across different market sectors and maturities.

• Investing in domestic and foreign issuers.

• Analyzing the credit quality of the issuer, security-specific features, current and potential future valuation, and trading opportunities to select investments.

• Investing in lower-quality debt securities (those of less than investment-grade quality, also referred to as high yield debt securities or junk bonds).

• Engaging in transactions that have a leveraging effect on the fund, including investments in derivatives - such as swaps (interest rate, total return, and credit default), options, and futures contracts - and forward-settling securities, to adjust the fund's risk exposure.

https://www.bloomberg.com/quote/LBUSTRUU:IND

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Fidelity® Investment Grade Securitized ETF

Ticker: FSEC

Investment Objective
The fund seeks a high level of current income.

Principal Investment Strategies

• Normally investing at least 80% of assets in investment-grade securitized debt securities (those of medium and high quality) and repurchase agreements for those securities.

• Investing in securitized debt securities (including mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities) issued by the U.S. Government and its agencies or instrumentalities, foreign governments, and corporations.

• Investing in U.S. Government securities issued by entities that are chartered or sponsored by Congress but whose securities are neither issued nor guaranteed by the U.S. Treasury.

• Managing the fund to have similar overall interest rate risk to the Bloomberg Barclays U.S. Securitized Index.

• Allocating assets across different market sectors and maturities.

• Investing in domestic and foreign issuers.

• Analyzing the credit quality of the issuer, security-specific features, current and potential future valuation, and trading opportunities to select investments.

• Investing in lower-quality debt securities (those of less than investment-grade quality, also referred to as high yield debt securities or junk bonds).

• Engaging in transactions that have a leveraging effect on the fund, including investments in derivatives - such as swaps (interest rate, total return, and credit default), options, and futures contracts - and forward-settling securities, to adjust the fund's risk exposure.

Securitized: US CMBS, Floating-Rate ABS, Agency CMBS

https://data.bloomberglp.com/professional/sites/10/Index-Methodology-2019-07-10.pdf

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