Fidelity Debuts 2 Active ESG Bond Funds

April 21, 2022

Fidelity is adding two active fixed income ETFs to its lineup, both with an ESG slant. 

The Fidelity Sustainable Core Plus Bond ETF (FSBD) and the Fidelity Sustainable Low Duration Bond ETF (FSLD) debuted on the NYSE Arca Thursday with expense ratios of 0.36% and 0.30%, respectively. 

Neither fund has limits in their prospectuses on what types of bonds their managers can use, but they prioritize target debt instruments from issuers deemed by Fidelity to have solid ESG track records. 

FSBD aims to match the interest rate risk of the Bloomberg MSCI U.S. Aggregate ESG Choice Bond Index, while FSLD aims to keep its duration below one year and its average maturity below two years. 

Fidelity launched its first ESG bond fund in February with the Fidelity Sustainable High Yield ETF (FSYD), which is also actively managed. There are now 10 active ESG bond funds on the U.S. market with just over $690 million in combined assets, according to ETF.com data provider FactSet. 

 

Contact Dan Mika at [email protected], and follow him on Twitter

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