Fidelity Total Bond ETF
FBND (NYSE Arca)
Fidelity Total Bond ETF (FBND) stands out as one of Morningstar's best core-plus bond ETFs for 2026, showcasing an actively managed approach. With a dividend yield of 4.66%, it aims to deliver reliable income despite a challenging year, reflected in a 1-year return of -1.08%. Investors may find the fund appealing, especially given its recent performance, where it outpaced its category with a year-to-date return of 1.0%, earning a solid B grade.
Pros:
- Actively managed core-plus bond ETF
- Steady income potential
Cons:
- Negative returns over the past year
- High expense ratio of 0.36%
The Fidelity Total Bond ETF (FBND) may be suitable for income-focused investors seeking exposure to a diversified bond portfolio with an actively managed strategy. While the fund has faced challenges in the past year and over five years, its competitive dividend yield and recent performance may appeal to those looking for potential stability in a volatile market environment.