FBND combines a rules-based sector allocation with active security selection for its take on broad exposure to the USD debt market. It accesses the same strategy of an existing Fidelity mutual fund (FTBFX) in a transparent ETF wrapper. While it`s actively managed, FBND uses the Barclays US Universal Bond Index to guide its sector allocation. This produces exposure to high yield (up to 20%), which is one of many sectors along with Treasurys, MBS, corporates, agencies and USD-denominated EM debt. The fund aims to match the duration of this index as well. To enhance its returns, FNBD can use derivatives to expand the opportunity set and add leverage.