Fidelity Investment Grade Bond ETF (FIGB US) - Investment Proposition

Core Viewpoint - Fidelity Investment Grade Bond ETF (FIGB) aims to provide a diversified, actively managed core allocation to U.S. investment-grade bonds, focusing on income and capital preservation [1] Investment Strategy - The strategy combines top-down sector positioning with bottom-up security selection, leveraging Fidelity's extensive credit research to manage duration, curve exposure, and issuer risk [1] - Return drivers include coupon income and prudent credit beta, with volatility moderated by high overall quality and deliberate interest-rate exposure [1] Portfolio Roles - The fund serves as a core bond sleeve for balanced accounts, a diversification anchor against equity drawdowns, and a risk-aware income source within multi-asset mandates [1] - It is suitable for asset allocators running core-plus frameworks seeking steady income with active risk controls and institutions managing liability-aware mandates that prioritize quality and liquidity [1] Market Conditions - The fund is favored in soft-landing or disinflationary regimes but may face challenges during abrupt spread shocks or rapid, disorderly yield re-pricings [1] - Key risks to monitor include credit-quality migration and downgrade pressures in spread sectors during late-cycle phases [1]