5 Fidelity ETFs That Pay Monthly For Retirees

"For holders of Fidelity accounts, there are only a few of their proprietary ETFs that offer monthly income. Most pay quarterly. If you trade only with Fidelity, you might want to research the many non-Fidelity ETFs available to trade through Fidelity that offer monthly dividends. But here are five Fidelity-branded ETFs that are on a monthly schedule, most of them trading in bonds."

"The Fidelity Total Bond ETF (FBND) is aptly named, offering broad exposure to the bond markets, including diverse bond types and durations. U.S. government bonds account for 37% of the portfolio, followed by corporate bonds at 30.5% and mortgage-backed securities at 17.4%. Investment grade bonds account for 84.8% of the fund, followed by high-yield at 10.9% and emerging markets at 2.9%."

Many retirees prefer ETFs that pay dividends, but most dividend ETFs distribute quarterly rather than monthly. Fidelity offers only a limited number of proprietary ETFs with monthly payouts, so investors who trade exclusively at Fidelity may consider non-Fidelity ETFs available through Fidelity for monthly income. Fidelity-branded monthly ETFs are largely bond-focused. The Fidelity Total Bond ETF (FBND) provides broad bond-market exposure. The Fidelity Corporate Bond ETF (FCOR) holds roughly 90% corporate bonds, mostly A or BBB, with about 7% in Treasuries. The Fidelity Municipal Bond Opportunities ETF (FMUB) invests at least 80% in federally tax-exempt municipal securities. The Fidelity Enhanced High Yield ETF (FDHY) targets high-yield debt using a qualitative credit model.

Read at 24/7 Wall St.