FBND Is Great, but Fidelity's Other High Yield ETF Pays Twice As Much

"Investors who want to focus on steady monthly payouts often look for investments that don't expose them to excessive credit risk. For this reason, the Fidelity Total Bond ETF ( NYSE:FBND) has become a go-to choice for Fidelity investors. Delivering a 4.62% yield, this fund functions as a core bond position that works well for portfolios of all shapes and sizes."

"However, it also makes sense that there are always going to be investors who want more, and so they look at Fidelity for other options that could pay twice as much. The good news is that Fidelity's high-yield lineup includes funds that push yields into the mid-six percent range while still paying monthly. These ETFs may carry more risk, but they are also ideal for investors seeking stronger cash flow than a traditional core bond can provide."

"As it stands today, the Fidelity Total Bond ETF is classified in the intermediate core-plus category and prioritizes stability. Given that it holds about 80% of its assets in investment-grade bonds and has delivered competitive long-term returns, the trade-off is clear. Because the fund avoids lower-rated credit, the yield stays comfortably in the 4% range. Income-oriented investors are also increasingly willing to explore bond ETFs with broader mandates if it means increasing their monthly cash flow."

The Fidelity Total Bond ETF yields 4.62% and serves as a core, stability-focused bond holding with roughly 80% investment-grade assets and monthly distributions. Yield remains around 4% because the fund avoids lower-rated credit, delivering competitive long-term returns. Income-seeking investors desiring stronger monthly cash flow can consider Fidelity's high-yield ETF lineup, which pushes yields into the mid-six percent range while still paying monthly. These high-yield ETFs increase credit exposure and carry higher risk, but can double income compared with the core ETF. The Fidelity Enhanced High Yield ETF (FDHY) currently yields 6.59% and pays monthly distributions.

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