Average Daily Volume
2.16M
Fund Overview
The Fidelity Total Bond ETF (FBND) is an actively managed exchange-traded fund that seeks to provide investors with a high level of current income by investing primarily in investment-grade U.S. fixed-income securities. The fund may also allocate a portion of its assets to below-investment-grade bonds (commonly known as 'junk bonds') and foreign debt securities. FBND offers broad exposure to the U.S. bond market, including government, corporate, and securitized debt instruments. The fund's active management approach allows flexibility in adjusting duration, credit quality, and sector allocations based on market conditions and the portfolio manager's outlook. With a diversified portfolio spanning the fixed-income spectrum, FBND aims to deliver competitive yields while managing risk through careful security selection and sector rotation.
- Asset Class
-
Bond
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.85 %
- Currency Hedged
-
No
- Portfolio Turnover
-
233 %
- Dividend Date
-
Why Invest in the FBND ETF?
Potential Benefits
- Actively managed strategy allows for dynamic adjustments to interest rate risk and credit exposure based on market conditions.
- Broad diversification across U.S. fixed-income sectors, including government, corporate, and securitized debt.
- Potential for higher yield compared to purely investment-grade bond ETFs through selective allocation to below-investment-grade securities.
- Professional credit analysis and security selection by Fidelity's fixed-income team.
- Liquidity advantages of an ETF structure combined with active management expertise.
Potential Risks
- Interest rate risk: Bond prices generally fall when interest rates rise, which could negatively impact the fund's value.
- Credit risk: Holdings in below-investment-grade bonds carry higher default risk despite potentially higher yields.
- Active management risk: Poor investment decisions could lead to underperformance compared to passive benchmarks.
- Liquidity risk: Some bond holdings may become difficult to sell quickly at fair prices during market stress.
- Foreign debt exposure introduces currency and geopolitical risks.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.3%
|
+1.7%
|
-1.8%
|
+0.2%
|
+0.3%
|
+0.3%
|
-1.3%
|
+0.4%
|
-2.9%
|
0.0%
|
-
|
-
|
| 2025 |
+0.7%
|
+2.3%
|
-0.1%
|
+0.3%
|
-0.4%
|
+1.6%
|
-0.1%
|
+1.2%
|
+1.2%
|
+0.6%
|
+0.6%
|
-0.4%
|
| 2024 |
-0.3%
|
-1.1%
|
+0.9%
|
-2.4%
|
+1.9%
|
+0.9%
|
+2.4%
|
+1.4%
|
+1.3%
|
-2.3%
|
+1.2%
|
-1.7%
|
| 2023 |
+4.0%
|
-2.9%
|
+2.3%
|
+0.7%
|
-1.1%
|
+0.2%
|
0.0%
|
-0.6%
|
-2.5%
|
-1.6%
|
+4.5%
|
+4.0%
|
| 2022 |
-2.0%
|
-1.2%
|
-2.6%
|
-3.6%
|
0.0%
|
-2.4%
|
+3.1%
|
-2.6%
|
-4.1%
|
-0.9%
|
+3.8%
|
-0.6%
|
| 2021 |
-0.7%
|
-1.4%
|
-0.9%
|
+0.9%
|
+0.4%
|
+1.0%
|
+1.0%
|
0.0%
|
-0.9%
|
0.0%
|
+0.1%
|
+0.1%
|
| 2020 |
+1.7%
|
+1.1%
|
-2.1%
|
+2.4%
|
+1.6%
|
+0.8%
|
+2.5%
|
-0.3%
|
-0.2%
|
-0.5%
|
+1.7%
|
+0.5%
|
| 2019 |
+1.7%
|
+0.2%
|
+1.8%
|
+0.3%
|
+1.4%
|
+1.3%
|
+0.3%
|
+2.2%
|
-0.5%
|
+0.4%
|
0.0%
|
+0.4%
|
| 2018 |
-0.9%
|
-0.9%
|
+0.2%
|
-0.5%
|
+0.6%
|
+0.2%
|
+0.1%
|
+0.5%
|
-0.4%
|
-0.9%
|
+0.2%
|
+1.3%
|
| 2017 |
0.0%
|
+0.7%
|
0.0%
|
+0.8%
|
+0.6%
|
-0.2%
|
+0.3%
|
+1.0%
|
-0.3%
|
+0.2%
|
-0.1%
|
+0.4%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
USHY
|
ISHARES BROAD USD HIGH YIELD CORP BD ETF |
0.0 % |
Top 10 holdings shown, out of 4 total holdings.
Related ETFs: FBND vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
FBND employs an active investment strategy that seeks to maximize total return through a combination of current income and capital appreciation. The fund's portfolio managers conduct fundamental credit analysis and macroeconomic research to construct a diversified bond portfolio. While the fund primarily invests in investment-grade U.S. bonds, it maintains the flexibility to allocate up to 20% of assets to below-investment-grade securities and foreign bonds. The management team adjusts duration exposure based on interest rate forecasts and rotates among sectors (government, corporate, mortgage-backed securities) according to relative value assessments. The fund does not track a specific index but may use various benchmarks as performance references.
Frequently Asked Questions
What is the average duration of FBND's portfolio?
FBND's duration varies based on market conditions and the manager's outlook, but typically ranges between 5-8 years, reflecting intermediate-term bond exposure.
Does FBND pay monthly dividends?
Yes, like most bond ETFs, FBND distributes income to shareholders on a monthly basis.
How does FBND's expense ratio compare to passive bond ETFs?
FBND's expense ratio is higher than passive bond ETFs (currently 0.36%) due to its active management strategy, but potentially justified by the opportunity for outperformance.
What percentage of FBND is invested in government bonds versus corporate bonds?
The allocation varies, but typically FBND maintains roughly 40-60% in government-related securities and 30-50% in corporate bonds, with the remainder in securitized products.
Industry Overview
The Fidelity Total Bond ETF (FBND) operates in the broad fixed-income ETF space, which provides investors with exposure to debt securities across various maturities, credit qualities, and sectors. The U.S. bond market represents one of the largest asset classes globally, offering income generation and portfolio diversification benefits. FBND's active approach differentiates it from many passive bond ETFs that simply track indexes, allowing for potentially better risk-adjusted returns through tactical allocation decisions. The current interest rate environment and economic outlook significantly impact bond market performance, making active management particularly relevant for navigating changing market conditions.
Alternative Comparison
Compared to passive bond ETFs like AGG or BND that track broad market indexes, FBND offers the potential for outperformance through active management, though with higher expense ratios. Among actively managed bond ETFs, FBND competes with products like PIMCO's BOND, differing in their credit quality tilts and sector allocation approaches. Unlike some competitors that focus exclusively on investment-grade bonds, FBND maintains flexibility to include selective high-yield exposure for enhanced yield potential. The fund's comprehensive approach across the fixed-income spectrum makes it a core bond holding alternative to more specialized ETFs.
Issuer Overview
Fidelity Investments, the issuer of FBND, is one of the largest and most established asset management firms globally, with decades of experience in fixed-income investing. The company manages numerous bond funds and ETFs across the risk spectrum, supported by a large team of credit analysts and portfolio managers. Fidelity's fixed-income division benefits from extensive research capabilities and trading relationships that can potentially enhance execution quality for FBND's portfolio.
Conclusion
FBND provides investors with actively managed exposure to the U.S. bond market, offering professional security selection and tactical allocation across fixed-income sectors. While the fund carries typical bond market risks, its flexible mandate and Fidelity's research capabilities may help navigate changing interest rate environments. Investors seeking core fixed-income exposure with potential for active alpha generation may find FBND an attractive option, though they should carefully consider the fund's risk profile and higher costs compared to passive alternatives.
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