Fidelity Sustainable USD Emerging Markets Bond

ETF description

The Fidelity Sustainable USD Emerging Markets Bond ETF aims to provide investors with exposure to a diversified portfolio of USD‑denominated sovereign and quasi‑sovereign bonds from emerging markets, while incorporating sustainable investment criteria. By tracking the Fidelity Sustainable USD Emerging Markets Bond index, this ETF seeks to offer income potential and capital appreciation while aligning with environmental, social, and governance (ESG) principles.

Issuer details

Fidelity Investments is a leading global asset management firm with over $4.5 trillion in assets under management as of June 2024. Fidelity offers many investment products, including mutual funds, ETFs, retirement services, and wealth management, covering various market segments such as equities, fixed income, sector‑based funds, target‑date funds, and ESG (Environmental, Social, Governance). Founded in 1946 by Edward C. Johnson II, Fidelity is known for its research‑driven approach. Notable ETFs include the Fidelity ZERO Total Market Index Fund and the Fidelity MSCI Information Technology Index ETF, reflecting Fidelity’s commitment to providing low‑cost and diversified investment options to meet the needs of individual and institutional investors alike.

Index details

This ETF is actively managed and it seeks to outperform the JP Morgan ESG EMBI Global Diversified index. The index provides targeted exposure to bonds issued by emerging market entities, denominated in U.S. dollars, while adhering to stringent sustainability criteria. By focusing on debt securities from issuers committed to environmental, social, and governance (ESG) principles, this index aims to offer both stable returns and support for sustainable development. Its emphasis on responsible investing within emerging markets makes it a valuable addition for portfolios seeking to combine income generation with a commitment to ethical investment practices.