Fidelity Investment Grade Bond ETF

Fidelity Investment Grade Bond ETF (FIGB) is an actively managed Fidelity bond fund that aims for a high level of current income. It mostly holds investment-grade US Treasuries, mortgage-backed securities and corporate bonds. Its managers choose sectors and bonds themselves but keep overall interest rate risk close to the Bloomberg U.S. Aggregate Bond Index. Its 0.36% expense ratio is far higher than the 0.03% charged by index funds such as AGG and BND.

• Over the year to Oct 27, 2026, FIGB returned -1.6%, 7th of 8 among similar funds.
• Its 5-year annualized return was -0.2%.
• Its worst full calendar year was 2022 (-13.4%); its best was 2025 (+7.0%).
• The deepest fall in its price history was 18.1% (Sep 14, 2021 to Oct 24, 2022), recovered by Feb 12, 2026.

As of Aug 31, 2026, the fund held 997 securities; the ten largest made up 31.62% of assets, and 9.55% sat in cash and money-market holdings.

The bonds mature in 15.5 years on average (weighted by size), with an average coupon of 4.38%.

• Over the three months to Aug 31, 2026, investors added a net $154.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.32%, -1.30%, +0.31%.

FIGB does not track an index. Fidelity's managers normally put at least 80% of assets into investment-grade debt, meaning bonds rated BBB- or higher by at least one major ratings agency, or unrated bonds they judge to be of similar quality. They keep the fund's sensitivity to interest rates similar to the Bloomberg U.S. Aggregate Bond Index. Within that limit, they spread money across sectors, maturities, and US and foreign issuers. They pick bonds by looking at credit quality, valuation and trading opportunities. They may also buy some lower-rated "junk" bonds.

As of August 31, 2026, the fund held 997 securities. The US Treasury made up 46% of the portfolio, companies 34%, and government-sponsored enterprises and agencies about 17%. The largest single holding was a 4.375% Treasury note due July 2031, at 4.4% of assets. The top 10 positions made up 32%, and the average time to maturity was 15.5 years.

The fund can use swaps, options, futures and forward-settling trades, which can have a leveraging effect. As of August 31, 2026, its debt holdings added up to 108.4% of net assets. Forward-settling trades are deals agreed now that settle later, such as the "to-be-announced" mortgage contracts among its top holdings. Turnover was 211%, which can raise trading costs. Because the fund sometimes uses cash for creations and redemptions, it may be less tax-efficient than ETFs that do this entirely in kind.

• FIGB charges 0.36% a year, versus an average of 0.14% for the similar funds below (7th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $37 in the first year and $456 over 10 years (assuming a 5% annual return).

It is a broad, mostly investment-grade bond fund managed to carry interest rate risk similar to the main US bond index.

FIGB could serve as the main bond holding that steadies a stock-heavy portfolio and pays income every month. Its trailing 12-month yield was 4.28% as of October 27, 2026. It launched in March 2021, so it has no record in the 2008 or 2020 crashes. In 2022, as interest rates rose, it lost 13.6%, its worst calendar year. Its deepest drop was 18.1%, from September 2021 to October 2022, and it took about 40 months to recover, until February 2026. A retiree who had to sell shares in late 2022 would have locked in much of that loss. In the SEC's standard example, costs on $10,000 come to $37 for the first year and $456 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not just one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).