FSEC | Fidelity Investment Grade Securitized ETF

FSEC ISSUER

The Fidelity Group of Funds, commonly known as FSEC, is a financial entity characterized by its investment strategy focused on securitized debt securities. Typically, the fund allocates at least 80% of its assets to investment-grade securitized debt securities, emphasizing medium and high-quality instruments, along with repurchase agreements for such securities. FSEC's investment portfolio includes securitized debt securities issued by various entities, including the U.S. Government and its agencies, foreign governments, and corporations. Furthermore, the fund extends its reach to U.S. Government securities from entities chartered or sponsored by Congress, without the securities being issued or guaranteed by the U.S. Treasury. To manage interest rate risk effectively, FSEC aligns its overall risk profile with the Bloomberg U.S. Securitized Index. The fund adopts a diversified approach by allocating assets across different market sectors and maturities, both domestically and internationally. In its investment decision-making process, FSEC rigorously analyzes factors such as credit quality, security-specific features, current and potential future valuation, and trading opportunities. Moreover, the fund ventures into lower-quality debt securities, commonly known as high yield or junk bonds, demonstrating a willingness to explore opportunities beyond conventional investment-grade instruments. FSEC also engages in strategic transactions that leverage the fund's exposure, incorporating derivatives such as interest rate, total return, and credit default swaps, options, futures contracts, and forward-settling securities. This multifaceted investment approach underscores FSEC's commitment to a comprehensive strategy in navigating the complexities of the financial markets.

FSEC DIVIDEND

The Fidelity Group of Funds, represented by FSEC, maintains a robust approach to dividend distribution, reflecting its commitment to delivering value to investors. FSEC's dividend strategy is intricately tied to its investment focus on securitized debt securities, encompassing various categories such as mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities. The fund's dividends are derived from the income generated by its diversified portfolio, including interest payments and potential capital gains. FSEC's investment in a range of securities, both domestic and foreign, further contributes to the fund's ability to generate a steady and reliable income stream for its shareholders. The fund's dividend policy aligns with its overall goal of optimizing returns while managing risk, providing investors with a compelling option for income-oriented investment strategies. Through its well-rounded approach to dividend distribution, FSEC underscores its dedication to meeting the financial objectives of its stakeholders in an ever-evolving market landscape.

FSEC TRACKING

The Fidelity Group of Funds, known as FSEC, employs a meticulous tracking strategy to align its performance with the Bloomberg U.S. Securitized Index. FSEC's tracking efforts are particularly focused on managing overall interest rate risk to closely mirror the movements and fluctuations observed in the benchmark index. By investing at least 80% of its assets in investment-grade securitized debt securities and utilizing repurchase agreements for such securities, the fund ensures a strong correlation with the index. The tracking process extends to securitized debt securities issued by a diverse range of entities, including the U.S. Government, foreign governments, and corporations, as well as U.S. Government securities from entities chartered or sponsored by Congress. This comprehensive tracking strategy reflects FSEC's commitment to providing investors with a performance profile that closely follows the dynamics of the broader securitized debt market, thereby offering a reliable and consistent investment experience within the parameters of the Bloomberg U.S. Securitized Index.

FSEC CORRELATION

Fidelity Group of Funds, specifically FSEC, demonstrates a strategic commitment to maintaining a robust correlation with the Bloomberg U.S. Securitized Index. FSEC's investment approach, which involves allocating a significant portion of its assets to investment-grade securitized debt securities and repurchase agreements, is designed to closely track the movements of the benchmark index. The fund's emphasis on securitized debt securities, including mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities, ensures that its performance aligns with the broader trends in the securitized debt market. By managing the overall interest rate risk in tandem with the Bloomberg U.S. Securitized Index, FSEC aims to provide investors with a reliable correlation that reflects the dynamics of the underlying market. This commitment to correlation underscores FSEC's dedication to delivering investment results that mirror the benchmark, offering investors a transparent and predictable relationship with the performance of securitized debt securities.

FSEC SECTOR

The Fidelity Group of Funds, operating under the name FSEC, employs a comprehensive sector allocation strategy as part of its investment approach. FSEC strategically distributes its assets across different market sectors, both domestically and internationally. The fund's sector allocation aims to achieve diversification and optimize risk-adjusted returns by investing in a broad array of securitized debt securities. These securities include mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities issued by entities such as the U.S. Government and its agencies, foreign governments, and corporations. FSEC's commitment to sector diversification reflects a nuanced understanding of market dynamics, enabling the fund to capitalize on opportunities across various sectors while managing potential risks. This sector-focused approach contributes to FSEC's ability to navigate changing market conditions and deliver a well-rounded performance for its investors.

FSEC EXPOSURE

The Fidelity Group of Funds, represented by FSEC, maintains a dynamic and well-managed exposure strategy in its investment activities. FSEC actively engages in transactions that may 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, as well as forward-settling securities. This approach allows FSEC to carefully adjust its risk exposure in response to market conditions. Additionally, the fund's allocation of assets across different market sectors, maturities, and geographies further contributes to its diversified exposure. FSEC's exposure strategy is designed to balance risk and return, providing investors with the potential for competitive yields while managing the inherent complexities of the financial markets. The fund's proactive stance on exposure underscores its commitment to optimizing performance and adapting to evolving market dynamics.