Fidelity® Corporate Bond ETF (FCOR)

Fidelity® Corporate Bond ETF (FCOR) Overview

Profile:

FCOR is an actively managed ETF that invests primarily in U.S. dollar-denominated corporate bonds of varying maturities. It seeks to maximize total return through a combination of current income and capital appreciation.

Objective:

FCOR aims to provide investors with high current income and capital appreciation potential by investing in a diversified portfolio of corporate bonds.

Issuer:

Fidelity Management & Research Company (FMR) is the issuer of FCOR.

Reputation and Reliability:

Fidelity is a highly reputable and reliable asset management firm with a long history of success. It is known for its strong investment performance, low fees, and excellent customer service.

Management:

The portfolio managers responsible for FCOR have extensive experience and expertise in the fixed income market. They employ a rigorous research process to select bonds with attractive risk-reward profiles.

Market Share:

FCOR is a small ETF with a market share of less than 1% in the corporate bond ETF category.

Total Net Assets:

FCOR has approximately $1.2 billion in assets under management (AUM).

Moat:

FCOR does not have a significant moat compared to its competitors. While it has a strong management team and a well-defined investment process, other corporate bond ETFs offer similar features.

Financial Performance:

FCOR has historically outperformed its benchmark, the Bloomberg Barclays US Corporate Bond Index, over the past 5 and 10 years. However, past performance is not indicative of future results.

Benchmark Comparison:

FCOR's outperformance of the benchmark can be attributed to its active management style and its focus on higher-yielding bonds.

Growth Trajectory:

The corporate bond market is expected to grow in the coming years, driven by low interest rates and increasing demand for fixed income investments. This could benefit FCOR's AUM and performance.

Liquidity:

FCOR has an average trading volume of approximately 20,000 shares per day. This makes it a relatively liquid ETF.

Bid-Ask Spread:

FCOR's bid-ask spread is typically around 0.05%, which is in line with other corporate bond ETFs.

Market Dynamics:

The corporate bond market is affected by various factors, including interest rates, economic growth, and credit spreads. Investors should be aware of these factors and their potential impact on FCOR's performance.

Competitors:

Key competitors of FCOR include iShares Aaa - A Rated Corporate Bond ETF (QLTA), Vanguard Intermediate-Term Corporate Bond ETF (VCIT), and SPDR® Bloomberg Barclays Corporate Bond ETF (LQD).

Expense Ratio:

FCOR's expense ratio is 0.35%, which is slightly higher than the average for corporate bond ETFs.

Investment Approach and Strategy:

FCOR uses an active management approach to select bonds that offer the potential for high current income and capital appreciation. The portfolio is well-diversified across different sectors and maturities.

Key Points:

• Actively managed corporate bond ETF
• Seeks high current income and capital appreciation
• Strong management team
• Historical outperformance of benchmark
• Average liquidity and bid-ask spread

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of bonds.
• Credit risk: The issuer of a bond may default on its debt, which could lead to a loss of principal.
• Market risk: The overall stock market can decline, which could negatively impact the value of FCOR.

Who Should Consider Investing:

FCOR is suitable for investors seeking high current income and capital appreciation potential. Investors should be comfortable with the risks associated with investing in corporate bonds.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, FCOR receives a 7 out of 10 rating. This indicates that the ETF has strong fundamentals and is well-positioned for future growth.

Resources:

• Fidelity® Corporate Bond ETF (FCOR) website: https://fundresearch.fidelity.com/mutual-funds/summary/316353188
• Bloomberg Barclays US Corporate Bond Index: https://www.bloomberg.com/professional/product/bloomberg-barclays-corporate-bond-index/

Disclaimers:

The information provided in this analysis should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.