ETF Evaluator:
Fidelity Enhanced High Yield ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in High Yield Bond Over the Last Year
| 7.6% | Fidelity Sustainable High Yield ETF (FSYD) |
| 7.4% | Horizon Flexible Income ETF (FLXN) |
| 6.7% | iShares Interest Rate Hdg Hi Yld Bd ETF (HYGH) |
| 6.6% | Fidelity Enhanced High Yield ETF (FDHY) |
| 6.3% | Harbor Ares Systematic High-Yield ETF (SIHY) |
Risk
Index
Risk
Index
ETF Details
Fidelity Enhanced High Yield ETF Overview
Fidelity Enhanced High Yield ETF (FDHY) is an actively managed Taxable Bond High Yield Bond exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2018.
The investment seeks a high level of income.
The fund normally invests at least 80% of its assets in debt securities rated below investment grade (also referred to as high yield debt securities or junk bonds). The advisor uses the ICE® BofA® BB-B U.S. High Yield Constrained Index as a guide in structuring the fund and selecting its investments as it relates to credit quality distribution and risk characteristics. The fund normally invests primarily in securities rated BB or B by S&P, Ba or B by Moody's, comparably rated by at least one nationally recognized credit rating agency, or, if unrated, considered by FMR to be of comparable quality.
About Fidelity Enhanced High Yield ETF (FDHY)
There are 3 members of the management team with an average tenure of 1.34 years: Orhan Imer (2025), Rahul Bhargava (2024) and Leo Landes (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and ICE BofA BB-B US HY Constnd TR USD index with a weighting of 100%. Fidelity Enhanced High Yield ETF has 296 securities in its portfolio. The top 10 holdings constitute 15.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Fidelity Enhanced High Yield ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Fidelity Enhanced High Yield ETF has 20.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.4% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.3% (77.2% domestic bond, 20.1% foreign bond and 0.0% convertible bond). Fidelity Enhanced High Yield ETF has 7.8% of the portfolio in cash.
Assets Under Management
The fund has $571 million in total assets, which is below the $1 billion average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FDHY Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Enhanced High Yield ETF expense ratio is below average compared to funds in the High Yield Bond category. Fidelity Enhanced High Yield ETF has an expense ratio of 0.35%, which is 12% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Enhanced High Yield ETF has a portfolio turnover rate of 79%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the High Yield Bond category.
Recently, in the month of July 2026, Fidelity Enhanced High Yield ETF returned -0.1%, which earned it a grade of B, as the High Yield Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Fidelity Enhanced High Yield ETF has a trailing yield of 6.56%, which is below the 6.77% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Fidelity Enhanced High Yield ETF Grades
Year to date, the ETF has returned 2.7%, 1.0 percentage points better than the category, which translates into a grade of A. The fund has returned 6.6% over the past year (grade of A), 8.3% over the past three years (grade of A) and 3.7% per year over the past five years (grade of C).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Fidelity Enhanced High Yield ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
FDHY Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FDHY Return (NAV) | -0.1% | 0.9% | 6.6% | 8.3% | 3.7% | na |
| FDHY Return (Price) | -0.0% | 0.8% | 6.8% | 8.3% | 3.7% | na |
| NAV +/- Price Return | -0.100% | 0.105% | -0.194% | 0.029% | 0.001% | na |
| High Yield Bond Avg | -0.2% | 0.5% | 5.0% | 7.8% | 3.8% | 5.0% |
| FDHY Grade (NAV) | B | A | A | A | C | na |
| +/- Category (NAV) | 0.1% | 0.3% | 1.6% | 0.5% | -0.1% | na |
| FDHY Tax-Cost Ratio | na | na | 2.6% | 2.7% | 2.6% | na |
FDHY Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FDHY Return (NAV) | 2.7% | 9.0% | 7.5% | 11.6% | -11.6% | 4.7% | 10.6% | 17.5% | na | na | na |
| FDHY Return (Price) | 2.6% | 9.2% | 7.5% | 11.1% | -11.3% | 4.3% | 10.7% | 16.9% | na | na | na |
| NAV +/- Price Ret | -0.030% | 0.025% | 0.005% | -0.043% | -0.024% | -0.076% | 0.006% | -3.9% | na | na | na |
| High Yield Bond Avg | 1.7% | 8.4% | 7.5% | 12.4% | -10.1% | 4.2% | 6.1% | 13.4% | -2.3% | 7.1% | 13.0% |
| FDHY Grade (NAV) | A | A | C | D | D | C | A | A | na | na | na |
| +/- Category | 1.0% | 0.6% | -0.0% | -0.8% | -1.5% | 0.5% | 4.5% | 4.1% | na | na | na |
| Risk Measures | |
| Beta: | 0.63 |
| R-Squared: | 70% |
| Standard Deviation: | 4.3% |
| Category Risk Index: | 0.99 |
| Category Risk Rating: | Average |
| Total Risk Index: | 0.35 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 6.6% |
| Total Assets: | $ 571 Mil |
| Share Class Assets: | $ 571 Mil |
| Turnover: | 79.0% |
| Expense Ratio: | 0.35% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Universal TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 2.2 years | |||
| Average Tenure: 1.3 years | |||
| Managers (Year): Bhargava Rahul (2024), Landes Leo (2025), Imer Orhan (2025) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 296 |
| % in Top 10 Holdings: | 15.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 20.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.4% |
| Domestic Bond: | 77.2% |
| Foreign Bond: | 20.1% |
| Convertible Bond: | 0.0% |
| Other: | -5.4% |
| Cash: | 7.8% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Fidelity Investments |
| Phone Number: | 800-343-3548 |
| Website: | www.institutional.fidelity.com |
| Inception Date: | June 12, 2018 |
Expenses and Fees
| Expense Ratio (%): | 0.35% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.40% |
