On Thursday, Fidelity Investments announced the launch of two new active bond ETFs, the Fidelity Investment Grade Bond ETF (FIGB) and the Fidelity Investment Grade Securitized ETF (FSEC). The new actively-managed bond ETFs are competitively priced with total expense ratios of 0.36%. With this launch, Fidelity now manages 39 ETFs with more than $25 billion in assets.
FIGB seeks to provide a high level of current income by 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.
FSEC seeks to provide a high level of current income by 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.
“We’ve seen strong growth in our actively-managed ETF lineup, and we’re excited to offer even more choices while delivering excellent value to financial advisors and individual investors,” said Greg Friedman, Fidelity’s Head of ETF Management and Strategy. “The launch of Fidelity Investment Grade Bond ETF and Fidelity Investment Grade Securitized ETF adds to our robust lineup of bond ETFs across duration and credit spectrums, utilizing Fidelity’s extensive active management capabilities.”
Fidelity’s Growing ETF Lineup
Fidelity Investment Grade Bond ETF and Fidelity Investment Grade Securitized ETF will utilize the same portfolio managers and research teams as their like-named mutual funds. The active bond ETFs began trading today on NYSE Arca, Inc. In addition to today’s launch of FIGB and FSEC, Fidelity’s suite of active bond ETFs includes the Fidelity Total Bond ETF (FBND), the Fidelity Limited Term Bond ETF (FLTB), and the Fidelity Corporate Bond ETF (FCOR). Fidelity also offers two-factor bond ETFs, the Fidelity High Yield Factor ETF (FDHY) and the Fidelity Low Duration Bond Factor ETF (FLDR).
Today’s announcement comes on the heels of the February 4, 2021 launch of four new active equity ETFs using Fidelity’s innovative proprietary structure: the Fidelity Growth Opportunities ETF (FGRO); the Fidelity Magellan ETF (FMAG); the Fidelity Real Estate Investment ETF (FPRO); and the Fidelity Small-Mid Cap Opportunities ETF (FSMO).
For more information, visit www.fidelity.com/etfs/investing-in-etfs.