- Fidelity® Preferred Securities & Income ETF is a core strategy that offers investors exposure to the preferred securities market, a hybrid investment category that combines features of both stocks and bonds.
- The ETF seeks a high total return through a combination of current income and capital appreciation. We normally invest at least 80% of the ETF's assets in preferred securities and other income-producing securities, such as contingent convertible securities and corporate hybrid securities.
- In managing the ETF, our goal is to provide income with low correlation to traditional investment-grade bonds and equity diversification with lower volatility than common stocks.
- Most issuers in the preferred securities market have a credit rating of BBB or BB, so strong fundamental research is key, and we rely heavily on our High Income Research Team.