FBND Is Great For Income, But There Are Better Options
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FBND Is Great For Income, But There Are Better Options
"The Fidelity Total Bond ETF holds at least 80% of its assets in investment-grade bonds, while the remaining 20% is allocated to lower-grade debt as opportunities appear. This gives it a strategy that can blend together government, corporate, and other fixed income selections, all selected through Fidelity's research drive and team-managed process. This has allowed the fund to deliver approximately 2.88% annually, against the 2.36% return from the Bloomberg US Aggregate Index."
"For individual investors out there who want to hold something that provides steady monthly income without excessive credit risk, the Fidelity Total Bond Fund ETF ( NYSE:FBND) has become a popular option. Offering a 4.62% dividend yield, you get broad diversification and active management to make you feel even more comfortable. Through September 2025, the Fidelity Total Bond Fund ETF has delivered a 6.57% year-to-date return and a 3.63% percent one-year return, which means it has outperformed the Bloomberg Aggregate Bond Index over the same holding period."
Fidelity Total Bond Fund ETF (FBND) targets monthly income with a 4.62% dividend yield and broad diversification across government, corporate, and other fixed-income sectors. The fund holds at least 80% investment-grade bonds while allocating up to 20% to lower-grade debt opportunistically and is managed via Fidelity's research-driven, team-managed process. Through September 2025 FBND posted a 6.57% year-to-date return and a 3.63% one-year return, outperforming the Bloomberg Aggregate Bond Index. The fund has delivered about 2.88% annually versus the Bloomberg US Aggregate's 2.36%. Vanguard Total Bond Market ETF (BND) is noted as a lower-cost alternative with a 0.03% expense ratio compared to FBND's 0.36%.
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