This is an actively managed bond ETF that diversifies across the US investment-grade bond market, including Treasuries, corporate bonds, and asset-backed securities. Based on fundamental analysis, it actively adjusts maturity and credit exposure in pursuit of stable interest income.

It suits medium- to long-term investors who want stable core exposure to US investment-grade bonds while seeking the additional return that active management may deliver.

It is an ETF managed by Fidelity using an active (actively managed) approach.

The fund diversifies broadly across US investment-grade bonds such as Treasuries, corporate bonds, and asset-backed securities, and actively allocates across maturity and credit segments based on fundamental analysis. Rather than simply tracking an index, it takes an active approach, using security selection to manage risk-adjusted returns while pursuing stable interest income.

• Active management of US investment-grade bonds
• Fundamentals-based security selection

Assets under management (AUM) stand at $674.3M, and the expense ratio is 0.36% per year.

Compared with similar broad and multi-sector bond ETFs such as IUSB and BINC, the main points of comparison are the management approach and asset allocation.

Bond ETFs are driven by the direction of interest rates and credit spreads. Bond prices generally come under pressure when rates rise and strengthen when rates fall. Because the focus is on investment-grade debt, volatility tends to be lower than that of high yield.

Fund flows into investment-grade bonds diverge depending on the interest rate cycle and risk appetite, and during periods of market turbulence money sometimes flows into them as a safe asset. Because the fund is actively managed, it is also worth noting that flows can depend on performance relative to the benchmark.

Its strength is the combination of investment-grade stability with active management, while interest rate sensitivity, credit risk, and the cost of active management are considerations.

For passive core bond exposure at a lower fee, direct substitutes include AGG and BND, and for those who want to concentrate on investment-grade corporate bonds, products such as LQD are also worth comparing. The three products shown in the table, IUSB, BINC, and JCPB, differ in asset mix and management approach, reflecting broad bond exposure and active multi-sector and core-plus strategies respectively. What sets this ETF apart is that it actively manages US investment-grade bonds.

Here are the points to review before investing in FIGB. Active management of investment-grade bonds is appealing, but interest rate sensitivity, credit risk, and the management fee should be confirmed in advance. It is also a good idea to compare it with passive core and multi-sector products.

Rising interest rates and wider credit spreads are the main variables for short-term performance, and the fund's performance relative to its benchmark can vary from period to period. Even investment-grade bonds can produce losses when rates spike.

It is a suitable candidate for medium- to long-term investors who want core exposure to US investment-grade bonds through active management. If cost and simple core index tracking are the priority, passive products such as AGG and BND are the better fit, while those who want active management of investment-grade bonds should compare this product alongside them before choosing.