Top 3 Fidelity Bond ETF Picks for 2026

2025-12-14 08:45:00 ET

While stocks continued to deliver strong returns in 2025, it's important not to ignore the fixed income sleeve of your portfolio. While they spent years struggling to yield much of anything during the Fed's zero interest rate policy years and had one of their worst years ever in 2022, the environment for bonds is now much improved.

Investors can still capture yields of 4% or greater across many points on the yield curve, and inflation is back to being contained. That establishes more of a neutral starting point where people can again consider fixed income as part of a traditional asset allocation as opposed to a low-yielding, low-potential anchor.

Fidelity's bond ETF lineup isn't huge -- only 13 funds currently -- but it does offer some nice options for taking advantage of the current landscape. With the U.S. economy facing a number of challenges and the direction of the Fed's interest rate policy unknown, a strategic approach to fixed income is advisable heading into the new year.

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