Investing involves risk, including risk of loss.
Diversification does not ensure a profit or guarantee against loss.
Past performance is no guarantee of future results.
All indexes are unmanaged and performance of the indexes includes reinvestment of dividends and interest income and, unless otherwise noted, is not illustrative of any particular investment. An investment cannot be made in any index.
Although bonds generally present less short-term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments. Additionally, bonds and short-term investments entail greater inflation risk—or the risk that the return of an investment will not keep up with increases in the prices of goods and services—than stocks.
Increases in real interest rates can cause the price of inflation-protected debt securities to decrease. The IA SBBI U.S. Intermediate-Term Government Bond Index is an unweighted index that measures the performance of five-year maturity U.S. Treasury bonds. Each year a one-bond portfolio containing the shortest non-callable bond having a maturity of not less than five years is constructed. IA SBBI U.S. Long-Term Corporate Bond Index is a custom index designed to measure the performance of long-term U.S. corporate bonds.
S&P 500®, a market capitalization-weighted index of common stocks, is a registered service mark of The McGraw-Hill Companies, Inc., and has been licensed for use by Fidelity Distributors Corporation and its affiliates.
Sharpe ratio compares portfolio returns above the risk-free rate relative to overall portfolio volatility (a higher Sharpe ratio implies better risk-adjusted returns).
Barclays U.S. Aggregate Bond Index is an unmanaged, market-value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. Barclays CMBS Index is designed to mirror commercial mortgage-backed securities of investment-grade quality (Baa3/BBB–/BBB– or above) using Moody’s, S&P, and Fitch, respectively, with maturities of at least one year.
BofA ML Corporate Real Estate Index is a market-capitalization-weighted index of U.S. dollar–denominated investment-grade corporate debt publicly issued in the U.S. domestic market by real estate issuers.
S&P/LSTA Performing Loan Index is a market value-weighted index designed to represent the performance of U.S. dollar-denominated, institutional leveraged performing loan portfolios (excluding loans in payment default) using current market weightings, spreads, and interest payments.
JP Morgan (JPM) EMBIG Composite Index tracks total returns for traded external debt instruments issued by emerging-market sovereign and quasi-sovereign entities. Citigroup G-7 non-USD Bond Index is designed to measure the unhedged performance of the government bond markets of the Group of 7, excluding the U.S., which are Japan, Germany, France, Britain, Italy, and Canada; issues included in the index have fixed-rate coupons and maturities of one or more years.
Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or solicitation to buy or sell any securities. The views and opinions expressed by the Fidelity speaker are his own as of the date of the recording and do not necessarily represent the views of Fidelity Investments or its affiliates. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views should not be relied on as investment advice, and because investment decisions are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity product. Neither Fidelity nor the Fidelity speaker can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Please consult your tax or financial adviser for additional information concerning your specific situation.
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