Fidelity® Limited Term Bond ETF (FLTB)FLTB

ETF Fidelity® Limited Term Bond ETF Summary

Profile:

Fidelity® Limited Term Bond ETF (FLTB) is a passively managed exchange-traded fund that primarily invests in U.S. dollar-denominated, investment-grade, fixed-income securities with maturities of one to five years. The ETF aims to track the performance of the Bloomberg U.S. Treasury Bond 1-5 Year Index.

Objective:

FLTB's primary investment goal is to provide current income and capital appreciation through investments in short-term and intermediate-term U.S. Treasury bonds.

Issuer:

Fidelity Management & Research Company: A well-established and reputable investment management firm with a long history of success in managing various investment products.

Management:

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

Market Share:

FLTB holds a market share of approximately 1.5% within the short-term and intermediate-term government bond ETF category.

Total Net Assets:

As of 2023, FLTB has approximately $7.5 billion in total net assets.

Moat:

FLTB benefits from its low expense ratio, diversified portfolio, and focus on a specific segment of the fixed-income market.

Financial Performance:

FLTB has historically delivered consistent returns with lower volatility compared to the broader bond market. Its performance has closely mirrored the Bloomberg U.S. Treasury Bond 1-5 Year Index.

Growth Trajectory:

The ETF's assets under management have been steadily growing over the past few years, indicating increasing investor interest in short-term and intermediate-term government bonds.

Liquidity:

FLTB has a high average trading volume, ensuring easy entry and exit for investors. The bid-ask spread is also relatively tight, minimizing transaction costs.

Market Dynamics:

The ETF's performance is primarily influenced by interest rate movements, economic conditions, and government policies.

Competitors:

• iShares Short Treasury Bond ETF (SHV): Market share of 2.5%
• Vanguard Short-Term Treasury ETF (VGSH): Market share of 2.0%
• SPDR Bloomberg Barclays Short Term Treasury ETF (BSV): Market share of 1.8%

Expense Ratio:

FLTB has an expense ratio of 0.07%.

Investment Approach and Strategy:

The ETF employs a passive management strategy, tracking the Bloomberg U.S. Treasury Bond 1-5 Year Index. Its portfolio primarily consists of U.S. Treasury bonds with maturities between one and five years.

Key Points:

• Low expense ratio
• Diversified portfolio
• Focus on short-term and intermediate-term government bonds
• Strong historical performance
• High liquidity

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of the ETF's holdings.
• Inflation risk: Inflation can erode the purchasing power of the ETF's returns.
• Credit risk: The ETF's holdings are subject to the creditworthiness of the issuers.

Who Should Consider Investing:

• Investors seeking current income and capital appreciation through short-term and intermediate-term government bonds.
• Investors with a low risk tolerance.
• Investors looking for a way to diversify their fixed-income portfolio.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, FLTB receives a 7.5 out of 10. The ETF benefits from its low expense ratio, diversified portfolio, and focus on a specific segment of the fixed-income market. However, it may be susceptible to interest rate and inflation risks.

Resources:

• Fidelity website: https://fundresearch.fidelity.com/mutual-funds/summary/315849961
• Yahoo Finance: https://finance.yahoo.com/quote/FLTB/
• ETFdb: https://etfdb.com/etf/FLTB/

Disclaimer:

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