Fidelity AAA CLO ETF - FAAA

Fidelity AAA CLO ETF is an actively managed exchange-traded fund that provides investors with targeted exposure to the collateralized loan obligation (CLO) market by investing at least 80% of its assets in AAA-rated CLO securities. These CLOs pool diversified portfolios of floating-rate corporate loans, typically issued to below-investment-grade companies across various industries, offering senior priority claims on cash flows for enhanced stability. The fund aims to generate income through these high-quality tranches, which historically deliver higher yields than similarly rated securities while featuring limited interest-rate risk due to the underlying loans' adjustable rates. Managed by Fidelity Investments' experienced team, including co-managers with over 65 years of collective expertise in high-income and structured credit, it benefits from active oversight to navigate market conditions, embedded credit protections like overcollateralization, and daily liquidity typical of ETFs. Launched in February 2026 as part of Fidelity's expanding active ETF lineup, the Fidelity AAA CLO ETF plays a key role in broadening retail access to this institutional asset class, supporting income-focused strategies amid evolving fixed-income landscapes with a competitive gross expense ratio of 0.20% after an initial fee waiver.