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

4 days ago 11

David Beren

Sat, December 13, 2025 astatine 9:51 AM CST 4 min read

Chip Somodevilla / Getty Images News via Getty Images

Investors who privation to absorption connected dependable monthly payouts often look for investments that don't exposure them to excessive recognition risk. For this reason, the Fidelity Total Bond ETF (NYSE:FBND) has go a go-to prime for Fidelity investors. Delivering a 4.62% yield, this money functions arsenic a halfway enslaved presumption that works good for portfolios of each shapes and sizes.

The Fidelity Enhanced High Yield ETF yields 6.59% and pays $3.24 annually. It doubles the income of FBND by investing successful high-yield firm bonds.
The Fidelity Sustainable High Yield ETF offers 6.53% output with ESG screening. Its 2.16% disbursal ratio limits hazard vulnerability versus accepted high-yield funds.
The Fidelity Limited Term Bond ETF yields 4.31% with shorter maturities. It delivered 9.37% dividend maturation portion reducing complaint volatility impact.
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However, it besides makes consciousness that determination are ever going to beryllium investors who privation more, and truthful they look astatine Fidelity for different options that could wage doubly arsenic much. The bully quality is that Fidelity's high-yield lineup includes funds that propulsion yields into the mid-six percent scope portion inactive paying monthly. These ETFs whitethorn transportation much risk, but they are besides perfect for investors seeking stronger currency travel than a accepted halfway enslaved tin provide.

As it stands today, the Fidelity Total Bond ETF is classified successful the intermediate core-plus class and prioritizes stability. Given that it holds astir 80% of its assets successful investment-grade bonds and has delivered competitory semipermanent returns, the trade-off is clear.

Because the money avoids lower-rated credit, the output stays comfortably successful the 4% range. Income-oriented investors are besides progressively consenting to research enslaved ETFs with broader mandates if it means expanding their monthly currency flow. This is wherever Fidelity's high-yield ETF lineup becomes a compelling choice.

Ultimately, the money and funds similar it assistance amplify your income, each portion adding tactical recognition vulnerability and inactive being capable to support the convenience of monthly distributions.

One of the champion alternatives Fidelity offers is the Fidelity Enhanced High Yield ETF (NYSE:FDHY), which yields 6.59%, treble that of the Fidelity Total Bond ETF. Investing successful high-yield firm bonds, the money pays monthly and is presently connected gait to administer $3.24 per share.