SBUX - FBND: Investors Should Be Accumulating This 5%-Yielding Bond Fund Before Rate Cuts
2024-05-05 12:49:14 ET
Summary
- Fidelity Total Bond ETF offers investors exposure to a wide range of bonds, including high-yield, investment grade, and emerging market bonds.
- The ETF has a generous yield of 5.13% and has a 4-star rating from Morningstar for its performance.
- Signs of weakness in the US economy suggest rate cuts are coming, which could lead to a major rally in bonds and potential capital gains for investors in this ETF.
Fidelity Total Bond ETF (FBND) invests in a wide variety of bonds which includes high-yield, investment grade and emerging market bonds. It invests up to 20% of its assets in lower quality bonds, in order to capture yield and also to fulfill the goal of being a "total" bond fund. It invests in a range of maturities as well. This bond ETF offers investors a generous yield, and a chance to hold one investment that gives them exposure to the wide range of options in the bond market. Let's take a closer look:...
FBND: Investors Should Be Accumulating This 5%-Yielding Bond Fund Before Rate Cuts