Fidelity Total Bond ETF (FBND): Complete Beginner's Guide
Fidelity Total Bond ETF (FBND) is a total bond ETF from Fidelity with an expense ratio of 0.36% and $5.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: 1.50%.
Last updated: April 2026
Fidelity • Total Bond
Expense Ratio
0.36%
AUM
$5.0B
Dividend Yield
3.80%
Inception
2014
Beginner Score
10/10
What is Fidelity Total Bond ETF?
FBND is an actively managed bond fund that invests across the entire U.S. fixed-income market, including government, corporate, and mortgage-backed bonds. Unlike passive bond index funds, Fidelity's managers actively select bonds to try to beat the benchmark. It is a good core bond holding for investors who want professional management of their fixed-income allocation.
FBND is managed by Fidelity and has been available since 2014. With $5.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.36%, which means for every $10,000 you invest, you pay approximately $36 per year in management fees.
FBND at a Glance — Key Metrics
| Expense Ratio | 0.36% |
| Total Holdings | 1,850 |
| P/E Ratio | N/A |
| Beta | 0.05 |
| Dividend Yield | 3.80% |
| AUM | $5.0B |
| Inception Year | 2014 |
| Issuer | Fidelity |
Top 10 Holdings in FBND
FBND holds 1,850 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury 4.25% 2034 | UST | 6.00% |
| 2 | U.S. Treasury 3.875% 2029 | UST | 5.00% |
| 3 | GNMA 30yr Pass-Through | GNMA | 4.50% |
| 4 | FNMA 30yr Pass-Through | FNMA | 4.00% |
| 5 | U.S. Treasury 4.5% 2026 | UST | 3.50% |
| 6 | FHLMC 30yr Pass-Through | FHLMC | 3.00% |
| 7 | Apple Inc. 3.85% 2043 | AAPL | 1.20% |
| 8 | JPMorgan Chase 4.25% 2032 | JPM | 1.10% |
| 9 | Microsoft Corp. 3.5% 2042 | MSFT | 1.00% |
| 10 | Bank of America 4.0% 2031 | BAC | 0.90% |
FBND's top holding is U.S. Treasury 4.25% 2034 (UST) at 6.00%, followed by U.S. Treasury 3.875% 2029 (UST) at 5.00% and GNMA 30yr Pass-Through (GNMA) at 4.50%. The top 10 holdings account for 30.20% of the fund's 1,850 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury 4.25% 2034 | UST | 6.00% |
| 2 | U.S. Treasury 3.875% 2029 | UST | 5.00% |
| 3 | GNMA 30yr Pass-Through | GNMA | 4.50% |
| 4 | FNMA 30yr Pass-Through | FNMA | 4.00% |
| 5 | U.S. Treasury 4.5% 2026 | UST | 3.50% |
| 6 | FHLMC 30yr Pass-Through | FHLMC | 3.00% |
| 7 | Apple Inc. 3.85% 2043 | AAPL | 1.20% |
| 8 | JPMorgan Chase 4.25% 2032 | JPM | 1.10% |
| 9 | Microsoft Corp. 3.5% 2042 | MSFT | 1.00% |
| 10 | Bank of America 4.0% 2031 | BAC | 0.90% |
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FBND Performance History
Here's how FBND has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.00%
1 Year
4.00%
3 Year
-1.00%
5 Year
1.50%
10 Year
2.50%
FBND has returned 1.50% annualized over 5 years and 2.50% over 10 years. YTD return is 1.00%.
View data table
| Period | Return |
|---|---|
| YTD | 1.00% |
| 1 Year | 4.00% |
| 3 Year | -1.00% |
| 5 Year | 1.50% |
| 10 Year | 2.50% |
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
FBND scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 1,850 holdings, and has been available since 2014, giving it a proven track record.
How to Buy FBND — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "FBND" — Use the search bar in your brokerage platform to find Fidelity Total Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
FBND Sector Allocation
Here's how FBND distributes its investments across different sectors of the economy:
FBND's largest sector allocation is Government Bonds at 38.0%, followed by Mortgage-Backed Securities at 27.0% and Investment-Grade Corporate at 22.0%.
View data table
| Sector | Weight |
|---|---|
| Government Bonds | 38.0% |
| Mortgage-Backed Securities | 27.0% |
| Investment-Grade Corporate | 22.0% |
| High-Yield Corporate | 5.0% |
| Asset-Backed Securities | 3.0% |
| International Bonds | 2.0% |
| Municipal Bonds | 1.5% |
| Cash & Equivalents | 1.5% |
Dollar Cost Averaging Into FBND
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With FBND's expense ratio of 0.36%, a $10,000 investment would lose approximately $3,011 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
FBND's expense ratio of 0.36% costs $3,011 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $43,599.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,450 | $243 |
| 10 | $21,589 | $20,880 | $709 |
| 15 | $31,722 | $30,172 | $1,550 |
| 20 | $46,610 | $43,599 | $3,011 |
Pros and Cons of FBND
Pros
- ✓Active management allows Fidelity's team to seek better returns than passive bond indexes
- ✓Extremely broad diversification across nearly 2,000 individual bond holdings
- ✓Low correlation to stocks provides genuine portfolio diversification benefits
- ✓Monthly income distributions from a mix of government and corporate bond interest
Cons
- ✗Higher expense ratio than passive bond index ETFs like BND or AGG
- ✗Bond prices drop when interest rates rise, which can cause short-term losses
- ✗Active management does not guarantee better performance than a simple index approach
Frequently Asked Questions
Is FBND a good ETF for beginners?▾
FBND has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of FBND?▾
FBND has an expense ratio of 0.36%. This means for every $10,000 you invest, you pay approximately $36 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in FBND?▾
You can invest in FBND with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does FBND pay dividends?▾
Yes, FBND pays dividends with a current yield of approximately 3.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in FBND?▾
The top holdings in FBND include U.S. Treasury 4.25% 2034 (6.00%), U.S. Treasury 3.875% 2029 (5.00%), GNMA 30yr Pass-Through (4.50%), and more. The fund holds 1,850 total positions, providing broad diversification across many companies.
What sectors does FBND invest in?▾
FBND's largest sector allocations are Government Bonds (38.00%), Mortgage-Backed Securities (27.00%), Investment-Grade Corporate (22.00%). This sector distribution shows a focus on government bonds stocks.
How much do FBND's fees cost over time?▾
With an expense ratio of 0.36%, a $10,000 investment in FBND would lose approximately $3,011 to fees over 20 years (assuming 8% annual returns). Consider whether the fund's strategy justifies these costs.