Fidelity® High Yield Factor ETF (FDHY)

Overview

The Fidelity High Yield Factor ETF (FDHY) seeks to provide investment returns that correspond to the performance of the Fidelity High Yield Factor Index. The fund focuses on high-yield corporate bonds, aiming to deliver higher income while managing risk through factor-based selection.

Reputation and Reliability

Fidelity is a well-established and reputable financial services company with a long history of managing investment funds.

Management Expertise

Fidelity has a dedicated team of investment professionals with expertise in fixed income and factor-based investing.

Goal

To provide investment returns that correspond to the performance of the Fidelity High Yield Factor Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Fidelity High Yield Factor Index, which uses a rules-based approach to select high-yield bonds based on factors such as credit quality, liquidity, and value.

Composition The ETF holds a portfolio of high-yield corporate bonds.

Market Share: Data not readily available.

Total Net Assets (AUM): 200000000

Key Competitors

• HYG
• JNK
• SPHY

Competitive Landscape

The high-yield ETF market is dominated by larger players like HYG and JNK. FDHY differentiates itself through its factor-based approach. While FDHY benefits from Fidelity's brand, it faces the challenge of competing against more liquid and established ETFs.

Historical Performance: Historical performance data is not provided in this response due to the limitations of this format. Consult Fidelity's website or other financial data providers for specific performance figures.

Benchmark Comparison: Benchmark comparison data is not provided in this response due to the limitations of this format. Refer to Fidelity's resources to compare the ETF's performance against its benchmark index.

Expense Ratio: 0.4

Average Trading Volume

The average trading volume is moderately liquid, allowing investors to buy and sell shares without significant price impact.

Bid-Ask Spread

The bid-ask spread is generally tight, minimizing transaction costs for investors.

Market Environment Factors

Economic growth, interest rate movements, and credit spreads significantly impact the performance of high-yield bonds held by FDHY.

Growth Trajectory

The growth trajectory of FDHY depends on investor demand for factor-based high-yield strategies. Future changes might involve adjustments to the factor weightings or inclusion of new factors in the index.

Competitive Edge

FDHY's competitive edge lies in its factor-based approach to high-yield investing, aiming to provide a more targeted and efficient way to access the high-yield market. The fund benefits from Fidelity's brand recognition and distribution network. The fundu2019s approach differentiates it from passively managed high-yield ETFs. Its focus on credit quality aims to reduce default risk. However, factor-based strategies might not always outperform traditional approaches.

Volatility

FDHY's volatility is expected to be moderate, reflecting the risk profile of high-yield bonds.

Market Risk

The primary market risk associated with FDHY is credit risk, as high-yield bonds are more susceptible to defaults during economic downturns. Interest rate risk also affects the fund, as rising rates can negatively impact bond prices.

Ideal Investor Profile

The ideal investor for FDHY is someone seeking higher income than investment-grade bonds while being comfortable with moderate risk. Investors who understand and believe in factor-based investing approaches would also find this ETF suitable.

Market Risk

FDHY is more suitable for long-term investors looking for income and potential capital appreciation. It may also appeal to active traders who use factor-based strategies in their portfolio.

The Fidelity High Yield Factor ETF (FDHY) provides exposure to high-yield corporate bonds through a factor-based investment strategy. It leverages Fidelity's expertise and brand to offer a differentiated approach to the high-yield market. FDHY seeks to balance risk and reward by focusing on factors such as credit quality and liquidity. However, investors should consider the potential for underperformance compared to more traditional high-yield ETFs and the inherent risks associated with high-yield bonds. The ETF appeals to investors who prioritize factor-based investing and are seeking potentially enhanced returns.

• HYG
• JNK
• SPHY
• ANGL
• XJH

Data Sources:

• Fidelity Investments Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and consultation with a qualified financial advisor. Market share data might have a delay.