ETF Hearsay: 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.

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.

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