Fidelity Debuts New ETFs to Help Bond Investors

“With a quantitative, rules-based methodology at its core and an active liquidity overlay, Fidelity High Yield Factor ETF leverages our extensive high income capabilities to offer an enhanced exposure to the high yield market for ETF investors,” Friedman said.

The actively managed Fidelity High Yield Factor ETF seeks to provide a high level of income and may also seek capital appreciation by investing in debt securities rated below investment grade. The fund uses a proprietary multi-factor quantitative model to screen over 1,000 debt securities and chooses those with strong return potential and low probability of default through a value and quality factor-based methodology. The fund uses the ICE BofAML BB-B US High Yield Constrained Index to guide the selection process of its investments as it relates to credit quality distribution and risk characteristics.

“Fidelity Low Duration Bond Factor ETF is unique in its category because it seeks a balance between credit risk and interest rate risk, on top of pursuing higher income potential than a money market with lower volatility than a short-term bond fund,” Friedman added.

For more information on new fund products, visit our new ETFs category.