Fidelity® Corporate Bond ETF (FCOR)

Fidelity® Corporate Bond ETF (FCB)

Profile:

FCB is an actively managed exchange-traded fund (ETF) that invests primarily in investment-grade U.S. corporate bonds. The ETF seeks to provide current income and capital appreciation through a diversified portfolio of corporate bonds.

Objective:

The primary investment goal of FCB is to maximize total return, consisting of current income and capital appreciation.

Issuer:

Fidelity Management & Research Company is the issuer of FCB.

Reputation and Reliability:

Fidelity is a well-established and reputable financial services company with a long history of managing investment products. It has a strong track record of performance and customer satisfaction.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

FCB is one of the largest corporate bond ETFs in the market, with over $42 billion in assets under management (AUM) as of November 2023.

Moat:

FCB's competitive advantages include its large size, experienced management team, and low expense ratio.

Financial Performance:

FCB has a strong track record of performance, outperforming its benchmark index over the past 3 and 5 years.

Benchmark Comparison:

FCB has consistently outperformed the Bloomberg Barclays US Corporate Bond Index over the past 3 and 5 years.

Growth Trajectory:

The corporate bond market is expected to grow in the coming years, driven by factors such as low interest rates and strong corporate earnings.

Liquidity:

FCB is a highly liquid ETF, with an average daily trading volume of over 1 million shares.

Bid-Ask Spread:

The bid-ask spread for FCB is typically tight, indicating that the ETF is easy to buy and sell.

Market Dynamics:

The market environment for FCB is influenced by factors such as interest rates, economic growth, and inflation.

Competitors:

FCB's main competitors include iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Vanguard Corporate Bond ETF (VCIT).

Expense Ratio:

The expense ratio for FCB is 0.08%, which is below the average for corporate bond ETFs.

Investment Approach and Strategy:

FCB uses an active management approach to invest in a diversified portfolio of investment-grade U.S. corporate bonds. The portfolio is constructed based on factors such as credit quality, maturity, and sector allocation.

Key Points:

• Large and liquid ETF with a low expense ratio.
• Strong track record of outperforming its benchmark index.
• Experienced management team with expertise in fixed income investing.

Risks:

• Interest rate risk: As interest rates rise, the value of bonds may decline.
• Credit risk: The issuer of a bond may default on its obligations, resulting in a loss of principal.
• Market risk: The value of the ETF may fluctuate due to changes in the overall market.

Who Should Consider Investing:

FCB is suitable for investors who are seeking current income and capital appreciation from a diversified portfolio of investment-grade U.S. corporate bonds.

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, FCB receives an AI-based fundamental rating of 8 out of 10. This rating is based on the ETF's strong financial performance, experienced management team, low expense ratio, and large size.

Resources and Disclaimers:

• Fidelity® Corporate Bond ETF (FCB) website: https://fundresearch.fidelity.com/mutual-funds/summary/315758363
• Bloomberg: https://www.bloomberg.com/quote/FCB:US
• Morningstar: https://www.morningstar.com/etfs/xnas/fcb/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.