Retirees are liking exchange-traded funds (ETFs) that offer dividends, but many of them pay out quarterly. What if you prefer monthly payouts? There are options.
For holders of Fidelity accounts, there are only a few of their proprietary ETFs that offer monthly income. Most pay quarterly. If you trade only with Fidelity, you might want to research the many non-Fidelity ETFs available to trade through Fidelity that offer monthly dividends. But here are five Fidelity-branded ETFs that are on a monthly schedule, most of them trading in bonds.
Fidelity Total Bond ETF (FBND)
The Fidelity Total Bond ETF (FBND | FBND Price Prediction) is aptly named, offering broad exposure to the bond markets, including diverse bond types and durations. U.S. government bonds account for 37% of the portfolio, followed by corporate bonds at 30.5% and mortgage-backed securities at 17.4%. Investment grade bonds account for 84.8% of the fund, followed by high-yield at 10.9% and emerging markets at 2.9%.
- Yield: 4.71%
- NAV: 46.11
- Expense ratio: 0.36%
- Assets under management: $23.44 billion
- One-year performance: 3.73%
Fidelity Corporate Bond ETF (FCOR)
The Fidelity Corporate Bond ETF (FCOR) is actively managed against the Bloomberg U.S. Credit Bond Index. About 90% of the portfolio consists of corporate bonds. Most of those holdings are rated A or BBB. About 7% is invested in U.S. Treasuries. The bonds are highly diversified across various durations.
- Yield: 4.47%
- NAV: 47.89
- Expense ratio: 0.36%
- Assets under management: $303.4 million
- One-year performance: 4.76%
Fidelity Municipal Bond Opportunities ETF (FMUB)
The Fidelity Municipal Bond Opportunities ETF (FMUB) invests at least 80% of the portfolio in municipal securities whose interest is exempt from federal income tax. Bonds from Texas, Illinois and Florida represent the largest share of holdings. Transportation, health care and corporate-backed bonds are the largest types of holdings.
- Yield: 3.47%
- NAV: 51.04
- Expense ratio: 0.3%
- Assets under management: $148.8 million
- One-year performance: 2.45%
Fidelity Enhanced High Yield ETF (FDHY)
The Fidelity Enhanced High Yield ETF (FDHY) seeks high income by investing in high-yield debt securities, or junk bonds. Its benchmark is the ICE BofA BB-B US High Yield Constrained Index. Managers use a qualitative model to identify companies unlikely to default. The bulk of the fund’s holdings are rated BB or B.
- Yield: 6.58%
- NAV: 49.35
- Expense ratio: 0.35%
- Assets under management: $464.45 million
- One-year performance: 2.59%
Fidelity Preferred Securities & Income ETF (FPFD)
The Fidelity Preferred Securities & Income ETF (FPFD) invests at least 80% in preferred securities and other income-producing securities. It uses the ICE BofA U.S. All Cap Securities Index as a benchmark. The FPFD portfolio is comprised of 68.58% bonds and 29.25% equities. Most of the bond holdings are rated BBB or BB.
- Yield: 5.06%
- NAV: 21.84
- Expense ratio: 0.59%
- Assets under management: $76.08 million
- One-year performance: 3.06%
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