Fidelity® Total Bond ETF (FBND)

Overview

The Fidelityu00ae Total Bond ETF (FBND) seeks to provide investment returns that correspond to the performance of the U.S. investment-grade bond market. It offers exposure to a broad range of U.S. investment-grade bonds, including U.S. Treasuries, agency securities, and corporate bonds. The fund primarily invests in a diversified portfolio of bonds to achieve its objective.

Reputation and Reliability

Fidelity is a well-established and reputable financial services company with a long history of managing investment funds.

Management Expertise

Fidelity has a team of experienced portfolio managers and analysts dedicated to fixed-income investing.

Goal

Seeks to provide investment returns that correspond to the performance of the U.S. investment-grade bond market.

Investment Approach and Strategy

Strategy: The ETF seeks to track the performance of a broad U.S. investment-grade bond market index.

Composition Primarily holds U.S. investment-grade bonds, including government, corporate, and agency securities.

Market Share: FBND holds a significant market share within the total bond ETF sector, benefitting from Fidelity's brand recognition and broad distribution network.

Total Net Assets (AUM): 3060000000

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• Schwab U.S. Aggregate Bond ETF (SCHZ)

Competitive Landscape

The total bond ETF market is highly competitive, with AGG and BND dominating in terms of AUM and market share. FBND competes by leveraging Fidelity's brand and distribution network, but faces an uphill battle against the established giants due to the nature of the commodity-like underlying investments. The advantages and disadvantages of FBND come down to differences in expense ratio and tracking error, which are marginal.

Historical Performance: Historical performance data is subject to market fluctuations. Past performance is not indicative of future results.

Benchmark Comparison: Benchmark comparison data is not readily available in a structured format.

Expense Ratio: 0.03

Average Trading Volume

FBND exhibits moderate liquidity with an average daily trading volume sufficient for most investors, but considerably lower than AGG or BND.

Bid-Ask Spread

The bid-ask spread for FBND is generally tight, indicating relatively low trading costs, but is typically wider than that of its larger competitors.

Market Environment Factors

Economic indicators such as interest rates, inflation, and GDP growth significantly affect FBND's performance; changes in monetary policy also influence bond yields.

Growth Trajectory

FBND's growth trajectory is tied to the overall demand for fixed-income investments and Fidelity's ability to attract assets; there haven't been material changes to the fund's stated strategy.

Competitive Edge

FBND's competitive edge stems from Fidelity's brand recognition and established distribution network, which allows it to reach a wide range of investors. The ETFu2019s low expense ratio also contributes to its attractiveness. However, the absence of a proprietary investment strategy means FBND primarily competes on price and distribution, making it difficult to significantly outperform its larger competitors. The ETF benefits from Fidelity's strong research capabilities, enhancing its ability to manage credit risk within the portfolio.

Volatility

FBND's volatility is generally low, reflecting the relatively stable nature of investment-grade bonds, but interest rate risk is a primary concern.

Market Risk

The primary market risk associated with FBND is interest rate risk; rising interest rates can negatively impact bond prices and the ETF's value.

Ideal Investor Profile

The ideal investor for FBND is a risk-averse individual seeking broad exposure to the U.S. investment-grade bond market for diversification or income generation.

Market Risk

FBND is suitable for long-term investors and passive index followers seeking a low-cost core bond holding.

Fidelity Total Bond ETF (FBND) provides broad exposure to the U.S. investment-grade bond market at a low cost. It offers diversification and can serve as a core holding in a fixed-income portfolio. FBND's performance is closely tied to interest rate movements, and it competes in a market dominated by larger players. While it benefits from Fidelity's brand, its commodity-like nature makes outperformance challenging.

• AGG
• BND
• SCHZ
• LQD
• IEF

Data Sources:

• Fidelity Investments
• iShares
• Vanguard
• Schwab

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Market data is subject to change.