Understanding the Fidelity Investment Grade Securitized ETF (FSEC)

What this ETF is trying to do

The Fidelity Investment Grade Securitized ETF, known by its ticker symbol FSEC, is an exchange-traded fund. This type of investment holds different types of assets to try and provide returns to its investors.

What the numbers show

As of July 16, 2026, the current price of one share is $43.67. Looking back at the last year, the price has changed slightly. One year ago, the estimated price was about $43.12.

If you look at the "total return," which includes both price changes and money paid out, the ETF grew by 5.81% over the last year. However, if you only look at the "price return," it only grew by 1.26%. This shows that a large part of the value comes from the payments made to investors rather than just the share price going up.

Income and distribution explanation

Some investors look for ETFs that pay them regular money, which is called a "distribution." FSEC has a distribution yield of 4.44%. Over the last 12 months, it made 13 distributions. These payments usually happen once a month, most often on a Thursday.

It is important to remember that a high yield alone can be misleading. A high percentage might look good, but you must also look at whether the share price is staying steady or falling.

NAV erosion explanation

"NAV erosion" is a term used when the value of the underlying assets in an ETF drops over time. Think of it like a bucket with a small hole in the bottom; even if you keep pouring water (income) in, the level of the water (the share price) might still go down.

If an ETF has severe erosion, the share price can fall from a high number to a much lower number. This can destroy your "principal," which is the original amount of money you put in. However, FSEC has an erosion score of 94, which is labeled as "Stable / sideways." This means it does not show signs of severe erosion.

Pros

• The ETF has a history of providing total returns over one, three, and twelve-month periods.

• It provides regular monthly income distributions.

• The price movement is considered stable or "sideways" rather than crashing downward.

Cons

• The year-to-date price return is currently negative at -1.04%.

• Investors must rely on distributions to see a positive total return.

Beginner takeaway

Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They prefer this because they want to collect their regular payments without losing the original money they invested. Because FSEC is labeled as stable, it is not currently showing the type of price collapse that destroys an investor's initial investment.