Investors who want to focus on steady monthly payouts often look for investments that don't expose them to excessive credit risk.
One of my retirement investing platforms happens to be Fidelity, so I've been diving deeper into which exchange traded funds (ETFs) may fit my risk profile and investing time horizon better than others of late.
Stocks might still be the preferred investment of choice. But exchange traded funds (ETFs) are quickly gaining ground.
A reader asked for my thoughts on FBND, a diversified bond ETF focusing on high-quality, medium-term bonds. It is quite close to its benchmark, BND or AGG, with several important benefits and advantages. These include a higher 4.5% yield and consistent outperformance, even after accounting for slightly higher credit risk.
Consider these ETFs for a change of pace.
On this week's episode of ETF Prime, VettaFi's Head of Research Todd Rosenbluth discusses the rise of active ETFs and anticipated ETF share class structure. Later, Fidelity's Eric Granat and Christine Thorpe spotlight the Fidelity Hedged Equity ETF (FHEQ) and the Fidelity Total Bond ETF (FBND).
Fidelity Investment's investment-grade securitized ETF is seeing noteworthy investor attention in the current environment. The strong interest places the Fidelity Investment Grade Securitized ETF (FSEC) among the top 10 most popular active ETFs in 2025 to date, as measured by net flows, according to Kirsten Chang, senior industry analyst at VettaFi.
Talk about a wild ride for interest rates. Market odds have gone from pricing in three or four rate cuts this year to pricing in just one or two following the U.S./China trade truce last weekend.
FBND has historically outperformed the total bond market due to its dynamic allocation strategy. FBND's flexible approach helps navigate market conditions better than passive funds. However, interested investors should know that economic outlook volatility and narrow credit spreads that have begun widening make high-yield and investment-grade bonds less attractive, implying a headwind for FBND.
Friday's rip-roaring jobs report has pushed the betting markets to price in a single rate cut for the entire year of 2025. Many top Wall Street brokerages have now revised their rate forecasts.
Spot bitcoin ETFs were approved by the SEC on January 10, 2024 — almost one year ago. As we approach this anniversary, it is impressive to see all the ETF milestones resulting from the launch.
Fidelity Total Bond ETF attracted more than $10 billion in net inflows this year. Since inception in 2014, FBND has outperformed the Bloomberg U.S. Aggregate Bond Index by 0.82% on an annualized basis. However, the ETF's tilt towards riskier assets makes it much more susceptible to cyclical shocks.