FSEC

📎 Investment Objective

The Fidelity Investment Grade Securitized ETF seeks to provide investment results that correspond, before fees and expenses, to the performance of the Bloomberg U.S. Securitized Index, which measures the performance of the U.S. investment grade securitized market.

✨ Key Features

• Broad exposure to the U.S. investment grade securitized debt market
• Low-cost passive index-tracking approach
• Potential for stable income and diversification within a fixed income portfolio
• Invests in a range of securitized debt instruments, including mortgages and asset-backed securities

⚠️ Primary Risks

• Interest rate risk: The value of the fund's holdings may decline when interest rates rise
• Credit risk: The fund is exposed to the risk of default or downgrade of the underlying securitized debt instruments
• Prepayment and extension risk: Mortgage-backed and asset-backed securities are subject to prepayment and extension risk
• Liquidity risk: The fund may experience reduced liquidity in certain market conditions

👤 Best For

This ETF may be suitable for investors seeking broad exposure to the investment grade securitized debt market as part of a diversified fixed income portfolio. It may be particularly appropriate for investors with a moderate risk tolerance and a medium-term investment horizon.