Fidelity Enhanced High Yield ETF

Frequently Asked Questions About FDHY

What does FDHY invest in?

The primary objective of this ETF is to deliver a strong stream of income combined with meaningful capital appreciation. It achieves this through a disciplined, quantitative investment strategy designed to systematically identify and capitalize on inefficiencies within the market.

What is the expense ratio of FDHY?

Fidelity Enhanced High Yield ETF (FDHY) charges an expense ratio of 0.35%. This is the annual fee deducted from fund assets to cover management and operations.

What is FDHY's distribution yield?

FDHY's trailing-twelve-month yield is 6.47%, calculated from the sum of distributions over the past year divided by the current price.

How does FDHY's covered-call strategy work?

FDHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of FDHY?

Effective duration measures FDHY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. FDHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of FDHY?

FDHY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.