Fidelity FCOR ETF: 6% 12-Month Return, 36 bps Fee

The Fidelity Corporate Bond ETF (FCOR) returned 6% for the 12 months ended June 17, according to YCharts. The fund charges a 36-basis-point expense ratio and targets investment-grade corporate debt and related securities.

Launched more than a decade ago, FCOR is an actively managed ETF that invests in investment-grade corporate bonds. Its prospectus allows holdings such as repurchase agreements with corporate counterparties, hybrid securities and synthetic instruments that managers consider to have corporate-debt characteristics. The fund can also use derivatives as part of its strategy.

Portfolio managers review individual issuers rather than tracking a market index. They can change sector weightings, adjust portfolio duration to alter interest-rate sensitivity, and apply credit research to avoid weaker issuers or seek higher-yielding, higher-quality names within the investment-grade universe.

FCOR’s 6% return over the prior 12 months outpaced the corporate-bond ETF category average of 5.1% for the same period, per YCharts data as of June 17.

The fund’s 36-basis-point expense ratio is comparable with many active bond ETFs and higher than many passive bond funds. The use of nonstandard instruments and derivatives adds complexity that can affect performance and liquidity.

The prospectus lists risks including credit risk, interest-rate risk and exposure from derivatives. Investors can review the prospectus and the ETF’s current holdings for details on strategy, fees and risks.

Some advisers say active corporate bond strategies allow managers to adjust holdings in response to changes in Federal Reserve policy or credit conditions, which may be relevant for portfolio allocations in 2026.