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FSEC

Fidelity Investment Grade Securitized ETF
TREND FOLLOWING PERFORMANCE HISTORY
2026-09-09
Executive Summary
The quantitative backtest for FSEC (Fidelity Investment Grade Securitized ETF) using the Excess Return MMA CA* strategy in a Investing context demonstrated its primary role in risk mitigation, experiencing a maximum drawdown of -4.8% (compared to the benchmark's drawdown of -8.6%). Over the evaluated period, this protective approach generated a Compound Annual Growth Rate (CAGR) of 4.3%, compared to a Buy-and-Hold benchmark return of 4.5%. The strategy executed 7 total trades.

* Excess Return MMA CA: Multi-Moving Average (Triple-Band) model utilizing sophisticated long/short cross durations optimized against volatility, with a month-end dynamic Cash Alternative sleeve rotation.

🛡️ FSEC Drawdown Shield & Downside Protection

Why Drawdown Dictates Longevity →
Peak Drawdown Defense
-4.8% (vs -8.6% B&H)
+3.8% shallower drawdown
Downside Efficiency
1.28 Sortino
+0.32 vs 0.96 B&H
Capital Sheltered from Risk
44.0% of Time
Earning Treasury yield during downturns
* Drawdown Shield demonstrates how systematic trend-following bounded historical drawdowns and protected principal capital compared to passive Buy & Hold.

📊 FSEC Quality Metrics & KPI Summary

Metric 1Y5YFull
StrategyB&HStrategyB&HStrategyB&H
Max Drawdown-2.52%-2.52%-4.78%-17.70%-4.78%-8.58%
Sharpe Ratio0.530.370.860.031.020.63
Sortino Ratio0.740.560.900.051.280.96
CAGR2.16%1.68%3.05%0.22%4.35%4.49%
% Time Invested85.3%100.0%39.5%100.0%56.0%100.0%
Trades / Year0.00.01.40.02.00.0

Cumulative Growth Performance

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Hydrating Performance Trajectory... Loading historical performance data
Figure 1: Cumulative Trajectory Analysis. Logarithmic growth comparison of FSEC under the Excess Return MMA CA strategy (Investing) versus Buy & Hold. The strategy produced a 4.3% CAGR with a -4.8% Max Drawdown across 7 trade signals (compared to Buy & Hold's 4.5% CAGR and -8.6% Max Drawdown).

Return Distribution Analysis

Histogram of monthly return distribution for FSEC under Excess Return MMA CA strategy in Investing context, illustrating downside risk mitigation and return skewness.
Figure 2: Monthly Return Distribution Profile. Monthly return distribution for FSEC under Excess Return MMA CA (Investing). Visualizes return frequency, volatility clustering, and tail-risk truncation relative to standard buy-and-hold returns.
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Top 5 non-correlated asset sleeves evaluated on 1Y daily percentage returns (Pearson r). Compare them side-by-side in Compare Studio to analyze portfolio diversification.

Diversifier Asset Category 1Y Correlation (r) Action
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Trade History

This log shows every signal-driven transition. Completed trades reflect standard market cycles. An Open or Mark-to-Market exit denotes an active position (either in the primary asset or a cash/yield sleeve) valued at the current price for reporting purposes. Interest entries record yield accrued from cash or cash alternatives (like BIL) during out-of-market defensive periods.

Entry DateExit DateTypeAllocationEntry PriceExit PriceNet Return %Exit Reason
🔒 Active Positions & Recent Execution Signals Hidden
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2025-08-28 2026-05-20 Completed 33.33% $41.74 $42.85 2.59% Signal
2025-07-25 2025-08-28 Interest (FLOT) 33.33% $1.00 $1.00 0.41% Interest Income
2025-06-03 2025-08-27 Interest (FLOT) 33.33% $1.00 $1.01 1.29% Interest Income
2025-02-28 2025-07-25 Completed 33.33% $40.86 $41.17 0.70% Signal
2025-05-02 2025-06-02 Interest (SHV) 33.33% $1.00 $1.00 0.32% Interest Income
2025-03-27 2025-05-01 Interest (FLOT) 33.33% $1.00 $1.00 0.17% Interest Income
2024-04-18 2025-03-27 Completed 33.33% $37.63 $40.76 8.29% Signal
2024-12-24 2025-02-28 Interest (FLOT) 33.33% $1.00 $1.01 0.87% Interest Income
2024-08-05 2024-12-24 Completed 33.33% $40.64 $39.63 -2.54% Signal
2024-08-02 2024-08-20 Interest (SHV) 33.33% $1.00 $1.00 0.27% Interest Income
2024-08-02 2024-08-05 Interest (SHV) 33.33% $1.00 $1.00 0.09% Interest Income
2024-05-09 2024-08-01 Interest (FLOT) 33.33% $1.00 $1.01 1.33% Interest Income
2023-06-02 2024-08-01 Interest (FLOT) 33.33% $1.00 $1.08 7.87% Interest Income
2024-01-23 2024-05-09 Completed 33.33% $38.32 $38.19 -0.41% Signal
2023-06-02 2024-04-18 Interest (FLOT) 33.33% $1.00 $1.06 6.04% Interest Income
2023-06-02 2024-01-23 Interest (FLOT) 33.33% $1.00 $1.04 4.21% Interest Income
2023-05-17 2023-06-01 Interest (SHV) 33.33% $1.00 $1.00 0.22% Interest Income
2023-04-04 2023-06-01 Interest (SHV) 33.33% $1.00 $1.01 0.71% Interest Income
2023-04-04 2023-06-01 Interest (SHV) 33.33% $1.00 $1.01 0.71% Interest Income
2023-03-02 2023-05-17 Completed 33.33% $36.69 $37.84 3.10% Signal
2023-02-28 2023-04-03 Interest (FLOT) 33.33% $1.00 $1.00 -0.20% Interest Income
2023-02-28 2023-04-03 Interest (FLOT) 33.33% $1.00 $1.00 -0.20% Interest Income
2023-02-28 2023-03-02 Interest (FLOT) 33.33% $1.00 $1.00 -0.03% Interest Income

Next Steps: Portfolio Integration & Comparative Analysis

Single-ticker trend following is designed to truncate tail risk inside a broader portfolio. View where FSEC ranks across 40+ tracked assets, evaluate correlation against non-correlated diversifiers, or model it inside a custom all-weather asset mix.

📊 View Full 40-Asset Backtest Matrix → 🛠️ Build Custom Portfolio with FSEC → ⚖️ Compare FSEC vs Non-Correlated Assets →