Fidelity Sustainable USD Corporate Bond UCITS ETF

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 25

Trading Currency: USD

Pays Income: False

Listing Date: 29 Jan 2026

Ticker: FBIU

ISIN: IE000W24OG76

This fund offers exposure to a diversified portfolio of US dollar-denominated, investment-grade corporate bonds, selected through a sustainability-focused lens. It physically replicates the performance of an index that considers specific Environmental, Social, and Governance (ESG) criteria, particularly those related to carbon transition and water screening. This methodology allows investors to align their fixed-income allocation with responsible investing principles while maintaining access to the core US corporate debt market. As an accumulating share class, any income generated from the underlying bonds is automatically reinvested back into the fund, which can help to enhance long-term compound growth for investors focused on capital appreciation.

The investment case is built on providing the stability and income potential characteristic of investment-grade bonds, coupled with a robust sustainability framework. The index methodology screens for companies that are better positioned for a low-carbon economy, which may mitigate exposure to long-term climate-related risks. By excluding issuers involved in controversial business activities and those with poor water management practices, the portfolio aims to achieve a stronger ESG profile than the broader market. This forward-looking approach may appeal to investors who believe that strong sustainability credentials can correlate with improved risk management and long-term financial outperformance.

Within a diversified investment strategy, this product can function as a core holding in the fixed-income segment. It provides a convenient and cost-effective vehicle for accessing the US corporate bond market while integrating critical ESG considerations. For individuals aiming to construct a more resilient and future-proof portfolio, this fund presents a compelling synthesis of traditional fixed-income attributes with a modern, sustainable investment philosophy, seeking to deliver competitive returns while supporting positive environmental and social outcomes.