Fidelity's Investment-Grade Securitized ETF Among Top Active ETFs

The Fidelity Investment Grade Securitized ETF (FSEC) has gained significant investor attention in 2025, becoming one of the top 10 most popular active ETFs based on net flows. With $3.46 billion in assets as of March 31 and a yield of 4.22% as of May 18, FSEC invests in medium- and high-quality investment-grade securitized debt, benefiting from the broader trend of increasing interest in active ETFs, which have captured roughly one-third of all ETF inflows this year.

Analysis

Fidelity Investment’s Investment Grade Securitized ETF (FSEC) is experiencing significant investor interest in 2025, ranking among the top 10 most popular active ETFs year-to-date based on net flows, as highlighted by VettaFi. The fund, launched in 2021, managed $3.46 billion in assets as of March 31, 2025, and provided a yield of 4.22% as of May 18, 2025, by investing in medium- and high-quality investment-grade securitized debt securities such as U.S. government and non-government mortgage-backed securities (MBS) and commercial mortgage-backed securities (CMBS). FSEC's success reflects a broader market shift towards active ETFs, which have attracted roughly one-third of all ETF inflows in 2025, surpassed $1 trillion in total assets, and account for nearly 90% of new ETF launches. This trend leverages Fidelity's established reputation in active management, with FSEC becoming one of the firm's largest ETFs by assets under management and its second-largest fixed income ETF, trailing only the Fidelity Total Bond ETF (FBND).

Key Decisions for Investors

• Given FSEC's strong net inflows, $3.46 billion AUM, and reported 4.22% yield, investors seeking actively managed exposure to investment-grade securitized debt should evaluate this ETF for potential inclusion in income-focused portfolios.
• The pronounced shift towards active ETFs, which have captured a third of 2025 inflows and represent nearly 90% of new launches, suggests tactical opportunities may exist in overweighting well-performing active strategies like FSEC within fixed income allocations.
• Closely monitor FSEC's AUM growth, flow data, and yield relative to benchmarks and peers in the securitized debt space, as these will be key indicators of its sustained appeal and performance within the current market environment.