Fidelity Dividend ETF for Rising Rates

The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in mid-and large-size companies in the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in securities included in the Index and in depository receipts representing securities included in the index.

The team favors dividend-paying companies that are estimated to continue to pay and grow their dividends.

In addition, the team prefers companies that have a positive correlation of returns to increasing 10-year U.S. Treasury yields.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may also lend securities to earn income for the fund.