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FSEC, or the Fidelity Investment Grade Securitized ETF, is an actively managed fund that aims to provide a high level of current income to investors. As of May 18, 2025, the fund had a yield of 4.22%.
Here’s a breakdown of its investment strategy and characteristics:
* Investment Focus: FSEC primarily invests in medium- and high-quality investment-grade securitized debt securities and repurchase agreements for those securities. This includes:
* Mortgage-backed securities (MBS)
* Commercial mortgage-backed securities (CMBS)
* Other asset-backed securities
* Issuers: The securities can be issued by the U.S. government and its agencies or instrumentalities, foreign governments, and corporations.
* Active Management: The fund is actively managed, meaning that a team of portfolio managers, research analysts, and traders make decisions on asset allocation, sector and security selection, yield-curve positioning, and opportunistic trading. This differs from passively managed funds that aim to replicate an index.
* Benchmark: FSEC aims to have similar overall interest rate risk to the Bloomberg U.S. Securitized Index.
* Quality Standards: At least 80% of the fund’s assets are invested in investment-grade securitized debt securities, generally those rated at least BBB- or equivalent by a nationally recognized statistical ratings organization.
* Launch Date and AUM: The fund was launched in 2021 and had approximately $3.46 billion in assets under management as of March 31, 2025.

Video courtesy of Escrow.com

Video courtesy of Escrow.com