At a glance
FSYD charges 0.55% a year, above the 0.45% average of the 7 funds most like it (the 6th cheapest of 8). It has $145.6M in assets, the 8th largest of that group; it paid 6.5% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.6% with distributions reinvested, 3rd of those 8 funds; over three years it returned +9.4% a year. Its ten largest positions make up 14.7% of the fund, out of 371 in all.
The short version
Fidelity Sustainable High Yield ETF (FSYD) is an actively managed fund that holds mostly below-investment-grade corporate bonds, known as "junk bonds." It picks them partly for their environmental, social and governance (ESG) traits. Its trailing 12-month yield was 6.5% as of October 27, 2026, paid monthly. Its 0.55% expense ratio is above the 0.45% average for similar funds. At about $146 million in assets, it is also the smallest fund in that group.
Price history
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FSYD +1.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FSYD official prospectus, to Oct 30, 2026 | — | +9.15% | — | — | — | +5.77% |
| ML038 index, same period | — | +8.50% | — | — | — | +5.61% |
| IXWRV index, same period | — | +8.66% | — | — | — | +5.46% |
| LB091 index, same period | — | +7.58% | — | — | — | +1.46% |
| FSYD price data to Oct 27, 2026 | +1.2% | +1.6% | +9.4% | — | — | +5.0% |
- Over the year to Oct 27, 2026, FSYD returned +1.6%, 3rd of 8 among similar funds.
- Its worst full calendar year was 2024 (+8.7%); its best was 2023 (+12.2%).
- The deepest fall in its price history was 12.1% (Mar 2, 2022 to Sep 27, 2022), recovered by Dec 1, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.2% | — |
| 2025 | +9.1% | +9.15% |
| 2024 | +8.7% | +8.69% |
| 2023 | +12.2% | +12.81% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.2600 | |
| 2025 | $3.1600 | +2.9% |
| 2024 | $3.0700 | -1.6% |
| 2023 | $3.1200 |
What's inside
As of Aug 31, 2026, the fund held 371 securities; the ten largest made up 14.73% of assets.
| Holding | Weight | |
|---|---|---|
| CVS HEALTH CORP Bonds and notes | 1.93% | |
| ENTEGRIS INC Bonds and notes | 1.72% | |
| REWORLD HLDG CORP Bonds and notes | 1.64% | |
| PG and E CORP Bonds and notes | 1.58% | |
| TERRAFORM POWER OPERATING LLC Bonds and notes | 1.58% | |
| 1261229 BC LTD Loans | 1.37% | |
| HILTON DOMESTIC OPERATING CO INC Bonds and notes | 1.36% | |
| BLOCK INC Bonds and notes | 1.30% | |
| LEVEL 3 FINANCING INC Bonds and notes | 1.18% | |
| HUDBAY MINERALS INC Bonds and notes | 1.06% | |
| GO DADDY OPERATING CO LLC / GD FINANCE CO INC Bonds and notes | 1.06% | |
| TENET HEALTHCARE CORP Bonds and notes | 1.03% | |
| CHARLES RIVER LABORATORIES INTERNATIONAL INC Bonds and notes | 1.02% | |
| NEXTERA ENERGY OPERATING PARTNERS LP Bonds and notes | 0.93% | |
| SUNOCO LP / SUNOCO FIN CORP Bonds and notes | 0.91% |
By country
United States 89.48%Canada 3.33%Luxembourg 2.14%Bermuda 1.06%Jersey 0.95%By issuer
Companies 98.74%The bonds mature in 6.2 years on average (weighted by size), with an average coupon of 6.42%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $21.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.09%, -0.49%, +0.83%.
How it works
FSYD is actively managed, not an index fund. Fidelity Management & Research Company (FMR) normally puts at least 80% of assets into debt rated below BBB- by at least one major rating agency, or unrated debt it judges to be similar. These are high-yield, or "junk," bonds. They pay more interest because the borrower is more likely to default. FMR uses the ICE BofA US High Yield Constrained Index as a guide for credit quality and risk. It does not track that index and may hold higher-rated bonds.
Each holding must show positive ESG traits. A bond can qualify in three ways: its issuer gets an above-average score in FMR's own ESG ratings, it carries a green or sustainability-linked label, or its issuer delivers impact through its core business, such as clean water or clean energy. Some industries are excluded. A quantitative model based on value and quality factors then screens more than 1,000 bonds for return potential and low default risk. Analysts also review each issuer's finances.
As of August 31, 2026, the fund held 372 positions. The 10 largest made up 14.7% of assets. Average maturity was 6.2 years and the average coupon was 6.42%. Turnover was 99%. The fund may create and redeem shares for cash, which can make it less tax-efficient than ETFs that exchange securities in kind.
What it really costs
- FSYD charges 0.55% a year, versus an average of 0.45% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FSYD | $56 | $176 | $307 | $689 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
FSYD pays monthly income from junk bonds and loans, with a trailing yield of 6.5% as of October 27, 2026, and that income comes with credit risk.
FSYD could add monthly income to the bond side of a portfolio. Its trailing 12-month yield was 6.5% as of October 27, 2026. The fund launched in February 2022, so it has no record from the 2008 or 2020 crashes and missed the start of the 2022 bear market. Even so, it fell 12.1% between March 2 and September 27, 2022. It then took about 14 months to recover, reaching its old high on December 1, 2023. A retiree who sold shares for spending in late 2022 would have locked in losses. Every full calendar year since has been positive. The weakest was 2024, at 8.69%, according to its prospectus. In the SEC's standard example, costs on $10,000 come to $56 in year one and $689 over 10 years. Most similar funds cost less. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly income from junk bonds. The trailing 12-month yield was 6.5% as of October 27, 2026.
- Investors who want high-yield bonds screened for ESG traits and industry exclusions, rather than a broad index of all junk issuers.
- Investors comfortable with active management: a value-and-quality model plus Fidelity analysts pick the bonds, with 99% annual turnover.
Look elsewhere if
- Cost-focused investors. The 0.55% expense ratio compares with 0.05% for SPHY and 0.08% for USHY, which hold similar bond mixes.
- Investors who can't accept steep credit losses. FSYD fell 12.1% in 2022 and needed about 14 months to recover.
- Investors who prefer large, heavily traded funds. At about $146 million as of August 31, 2026, FSYD was the smallest of eight similar funds.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FSYD this fund | 6.2 yrs | 0.55% | $145.6M | +1.6% | +9.4% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| HYDB iShares High Yield Systematic Bond ETF | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
Questions investors ask
Does FSYD pay monthly dividends?
Yes. FSYD pays distributions every month. In the 12 months through October 27, 2026, it paid $3.04 per share, a trailing yield of 6.5%. The payments come mainly from interest on the junk bonds and loans it holds. They can rise or fall as holdings change and as defaults or rate shifts affect income. The fund is not a bank deposit, so neither the payout nor the share price is guaranteed.
What's the difference between FSYD and JNK?
The main differences are cost, size and approach. SPDR Bloomberg High Yield Bond ETF (JNK) is the closest match by maturity and issuer mix. It charges 0.40% a year, compared with 0.55% for FSYD. JNK held about $7.3 billion as of June 30, 2026, while FSYD held $146 million as of August 31, 2026. FSYD is actively managed and applies ESG screens and exclusions. Over the three years to October 27, 2026, FSYD returned 9.4% a year, compared with 8.7% for JNK.
Is FSYD good for retirement income?
It may suit retirees who want monthly income and can accept junk-bond risk. Its trailing yield was 6.5% as of October 27, 2026. The trade-off is credit risk. The fund fell 12.1% in 2022 and took about 14 months to recover, reaching its old high on December 1, 2023. Its 0.55% expense ratio is also above the 0.45% average for similar funds. High-yield bonds can fall alongside stocks in downturns, so they are often held alongside higher-quality bonds, not in place of them.
What does FSYD hold?
FSYD holds mostly US corporate junk bonds, plus some loans. As of August 31, 2026, bonds and notes made up 87% of assets, loans about 10% and US issuers 89%. The largest positions were a CVS Health bond due 2054 (1.9%), Entegris (1.7%), Reworld (1.6%), PG&E (1.6%) and TerraForm Power (1.6%). The fund held 372 positions, and the top 10 made up just 14.7% of assets, so no single issuer dominates.
How risky is FSYD?
FSYD carries more risk than a high-quality bond fund, though its price has swung far less than stocks. Its three-year volatility was 5.1% as of October 27, 2026, and its deepest drop was 12.1%, in 2022. Junk-bond issuers are more likely to default, and the fund may own companies in troubled financial condition. Rising interest rates can also push bond prices down. Its ESG screens and quantitative model may make its returns differ from the broader high-yield market.