INVESTING IDEAS

Expand diversification with Fidelity Total Bond ETF (FBND)

Investors can help minimize volatility, stabilize returns, and may be better positioned for long-term growth by adding the diversification benefits of a dynamic bond strategy like the Fidelity Total Bond ETF.

Why diversify with bonds?

Diversification is essential for investors as it spreads investments across various asset classes, industries, and regions, reducing dependency on any single area. By balancing exposure, it helps manage risk and can help minimize the impact of underperformance in any one investment. Diversification can also reduce portfolio volatility, aiming for a smoother investment experience during market fluctuations. As shown in the visual to the right, since 1926, when stocks have fallen, bonds have helped stabilize overall portfolio returns 88% of the time.

Bond returns in years when stocks were down


As of December 31, 2024.
Source: Morningstar EnCorr, Fidelity Investments (AART).
It is not possible to invest directly in an index. All indices are unmanaged. Index performance is not meant to represent that of any Fidelity mutual fund. Diversification does not ensure a profit or guarantee against loss. Bond returns represented by the performance of the Bloomberg U.S. Aggregate Bond Index from January 1976 and by a composite of the IA SBBI U.S. Intermediate-Term Government Bond Index (67%) and the IA SBBI U.S. Long-Term Corporate Bond Index (33%) from January 1926 through December 1975. Stock returns represented by the performance of the S&P 500 Index.

Past performance is no guarantee of future results.

For illustrative purposes.

Add stability to your bond exposure

Diversifying your bond exposure manages risk and can offset losses in one asset class with gains in another, targeting stability while minimizing volatility. By allocating to a dynamic bond strategy like FBND, investors have access to a broad array of fixed income sectors, helping capture the benefits of diversification which may position their portfolio for long-term success.

Expand diversification opportunities with Fidelity Total Bond ETF (FBND)

  • Dynamic multi-sector strategy
  • Competitive risk-adjusted returns potential
  • Contrarian approach