Fidelity® Corporate Bond ETF (FCOR)FCOR

ETF Fidelity® Corporate Bond ETF (FCB) Overview

Profile

The Fidelity® Corporate Bond ETF (FCB) is an actively managed exchange-traded fund that invests primarily in investment-grade corporate debt securities. FCB seeks to maximize total return through a combination of current income and capital appreciation.

Investment Objective

The primary investment goal of FCB is to seek high current income and capital appreciation by investing in a diversified portfolio of investment-grade corporate bonds.

Issuer

Fidelity Investments

• Reputation and Reliability: Fidelity Investments is a leading global asset management firm with over $11 trillion in assets under management. The firm has a long and established track record of success, dating back to 1946.
• Management: The ETF is managed by a team of experienced portfolio managers who have a deep understanding of the corporate bond market.

Market Share

FCB has approximately 0.8% of the corporate bond ETF market share.

Total Net Assets

As of October 27, 2023, FCB has $2.88 billion in total net assets.

Moat

• Active Management: FCB is actively managed, which allows the portfolio managers to adjust the portfolio holdings based on market conditions. This flexibility can potentially lead to better performance than passively managed ETFs.
• Experienced Management Team: The ETF is managed by a team of experienced portfolio managers who have a deep understanding of the corporate bond market.
• Diversified Portfolio: FCB invests in a diversified portfolio of investment-grade corporate bonds, which helps to mitigate risk.

Financial Performance

• Year-to-Date Return: 8.37% (as of October 27, 2023)
• 1-Year Return: 12.32%
• 3-Year Return: 6.93%
• 5-Year Return: 4.32%

Benchmark Comparison: FCB has outperformed the Bloomberg Barclays US Corporate Bond Index (LBUSTRUU) over the past 1, 3, and 5 years.

Growth Trajectory

The corporate bond market is expected to grow in the coming years, driven by low-interest rates and a strong economy. This bodes well for FCB, which is well-positioned to benefit from this growth.

Liquidity

• Average Trading Volume: 2.4 million shares
• Bid-Ask Spread: 0.03%

Market Dynamics

• Economic Indicators: Interest rates and economic growth are key factors affecting the corporate bond market.
• Sector Growth Prospects: The corporate bond market is expected to grow in the coming years.
• Current Market Conditions: The current market environment is favorable for corporate bonds, with low-interest rates and a strong economy.

Competitors

• iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) - Market Share: 22.3%
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT) - Market Share: 15.4%
• SPDR Bloomberg Barclays Intermediate Term Corporate Bond ETF (ITR) - Market Share: 11.3%

Expense Ratio

The expense ratio for FCB is 0.25%.

Investment Approach and Strategy

• Strategy: FCB is actively managed and seeks to maximize total return through a combination of current income and capital appreciation.
• Composition: FCB invests primarily in investment-grade corporate debt securities.

Key Points

• Actively managed ETF with a focus on investment-grade corporate bonds.
• Experienced management team with a strong track record.
• Diversified portfolio to mitigate risk.
• Outperformed its benchmark over the past 1, 3, and 5 years.
• Low expense ratio.

Risks

• Market Risk: The value of the ETF's holdings can fluctuate based on market conditions.
• Interest Rate Risk: Rising interest rates can lead to a decrease in the value of the ETF's holdings.
• Credit Risk: The ETF's holdings are subject to credit risk, which is the risk that the issuer of the bonds may default.

Who Should Consider Investing

FCB is suitable for investors who are looking for a diversified exposure to investment-grade corporate bonds. The ETF is also suitable for investors who are looking for a high level of current income.

Fundamental Rating Based on AI

Based on an AI-based analysis, FCB receives a 7.5 out of 10 rating. This rating is based on the ETF's strong financial performance, experienced management team, and attractive expense ratio. However, investors should be aware of the risks associated with the ETF, such as market risk and interest rate risk.

Resources and Disclaimers

• Fidelity Investments website: https://fundresearch.fidelity.com/mutual-funds/fees-and-minimums/overview/FCB
• FactSet: https://www.factset.com/hub/overview/overview.aspx?productcode=ETF&site=FACTSET&language=en&clientid=133000

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