FLDB

Fidelity Low Duration Bond ETF

$50.59

+0.00%

Market closed. Last update: 10:49 PM ET

📎 Investment Objective

The Fidelity Low Duration Bond ETF (FLDB) seeks to provide a high level of current income consistent with preservation of capital.

Overview

ETF tracking Fidelity Low Duration Bond ETF

Category Fixed Income

Issuer Other

Inception Date 2024-02-26

Market Cap $384.5M

Average Volume N/A

Dividend Yield 3.67%

52-Week Range $50.31 - $50.73

VWAP $50.58

Performance

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Investment Summary

📎 Investment Objective

The Fidelity Low Duration Bond ETF (FLDB) seeks to provide a high level of current income consistent with preservation of capital.

🎯 Investment Strategy

The fund invests primarily in investment-grade debt securities, including U.S. government securities, corporate bonds, and mortgage-backed securities, with an average duration of 3 years or less. The fund's managers aim to maintain a low-risk profile by investing in high-quality, short-term fixed income instruments.

✨ Key Features

Focuses on low duration, investment-grade fixed income securities
Targets an average portfolio duration of 3 years or less to reduce interest rate risk
Aims to provide a steady stream of current income with limited volatility
Expense ratio of 0.00% makes it a low-cost option for fixed income exposure

⚠️ Primary Risks

Interest rate risk: The fund's value may decline when interest rates rise
Credit risk: The fund is exposed to the risk of issuers defaulting on their debt obligations
Liquidity risk: Less liquid securities may be difficult to sell at desired prices
Reinvestment risk: Proceeds from maturing securities may need to be reinvested at lower yields

👤 Best For

The Fidelity Low Duration Bond ETF may be suitable for investors seeking a low-risk, low-volatility fixed income allocation to help stabilize their overall portfolio. It can be particularly useful for investors with a shorter investment horizon or those looking to reduce interest rate sensitivity in their bond holdings.