Fidelity Tactical Bond ETF (FTBD)

Overview

The Fidelity Tactical Bond ETF (FBND) is an actively managed ETF that seeks a high level of current income, with a secondary goal of capital appreciation, by investing in a diversified portfolio of fixed-income securities of varying maturities.

Reputation and Reliability

Fidelity is a well-established and reputable asset manager with a long history in the financial industry.

Management Expertise

Fidelity boasts a deep bench of experienced investment professionals specializing in fixed-income strategies.

Goal

Seeks a high level of current income and, secondarily, capital appreciation.

Investment Approach and Strategy

Strategy: Actively managed, employing a flexible approach to adjust sector allocation, duration, and credit quality based on market conditions.

Composition Primarily invests in a diversified portfolio of U.S. and international investment-grade and high-yield bonds, as well as emerging market debt and other fixed-income securities.

Market Share: Market share varies based on specific fixed-income ETF categories and is subject to change.

Total Net Assets (AUM): 1800000000

Key Competitors

• AGG
• BND
• LQD
• HYG
• IEF

Competitive Landscape

The fixed-income ETF market is highly competitive with several large players. FBND differentiates itself through active management, providing flexibility to navigate changing market conditions. However, it faces competition from passive, index-tracking ETFs that often have lower expense ratios. Its active management could lead to outperformance or underperformance compared to benchmarks. The other ETFs track different market indices, or focus on a specific segment of the bond market.

Historical Performance: Historical performance varies. Investors should review FBND's official fact sheet for updated performance data.

Benchmark Comparison: Benchmark comparison varies. Review updated performance data to see performance relative to relevant fixed income benchmarks.

Expense Ratio: 0.36

Average Trading Volume

FBND's average trading volume is sufficient for most investors, allowing for relatively easy entry and exit.

Bid-Ask Spread

The bid-ask spread is typically reasonable, reflecting adequate liquidity.

Market Environment Factors

Economic indicators such as interest rates, inflation, and GDP growth significantly impact fixed-income performance. Geopolitical events and credit spreads also influence returns.

Growth Trajectory

FBND's growth is tied to investor demand for actively managed fixed-income solutions. Changes to strategy and holdings are actively managed and depend on the economic factors and market analysis of the managers.

Competitive Edge

FBND's competitive advantage stems from Fidelity's established brand and experienced management team. The active management approach allows for dynamic adjustments to the portfolio based on market conditions, potentially leading to outperformance. The flexibility to invest across different sectors and credit qualities within the fixed-income market is a key differentiator. Furthermore, Fidelity's research capabilities and resources support informed investment decisions.

Volatility

FBND's volatility is moderate compared to equity ETFs but can fluctuate based on interest rate sensitivity and credit risk.

Market Risk

The underlying assets expose FBND to interest rate risk, credit risk, and inflation risk. Changes in interest rates can negatively impact bond prices. Credit risk arises from the possibility of issuers defaulting on their debt obligations.

Ideal Investor Profile

Suitable for investors seeking current income and potential capital appreciation, and who are comfortable with the risks associated with fixed-income investments and active management.

Market Risk

Suitable for both long-term investors and active traders, but requires an understanding of fixed-income markets and the implications of active management.

Fidelity Tactical Bond ETF (FBND) is an actively managed fixed-income ETF seeking high current income and capital appreciation. Its active management provides flexibility to adapt to changing market conditions. However, investors should be aware of the risks associated with interest rate sensitivity, credit risk, and active management, which can lead to both outperformance and underperformance. With Fidelity's established brand and diverse holdings, FBND caters to investors who understand and prefer a flexible approach to fixed income investing.

Data Sources:

• Fidelity Investments
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Data may be subject to change. Consult with a qualified financial advisor before making any investment decisions.