Fidelity launches global tactical bond ETF

Jan 27th, 2023 | By | Category: Fixed Income

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Fidelity Investments has launched a new actively managed fixed income ETF in the US which seeks alpha across multiple debt markets globally.

Fidelity launches tactical bond ETF

Fidelity’s latest fixed income ETF takes an active approach to investing across global bond markets.

The Fidelity Tactical Bond ETF (FTBD US) has been listed on NYSE Arca with an expense ratio of 0.55%.

The fund may invest in government and corporate bonds, securitized debt, floating-rate loans, inflation-protected debt, collateralized loan obligations, hybrid and preferred securities, and contingent convertibles.

It has no limitations for allocating to high yield bonds including those from issuers located in emerging markets.

The ETF may also invest unrestricted in securities denominated in currencies other than the US dollar, although foreign currency exposure is expected to be regularly hedged using forward foreign currency exchange contracts.

Managed by Jeffrey Moore and Michael Plage, seasoned portfolio managers at Fidelity Investments, the ETF will construct its portfolio utilizing a top-down analysis of global debt sectors followed by a bottom-up inspection of the credit quality of issuers and security-specific features.

The ETF may also engage in tactical trading opportunities if arising.

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