Fidelity Total Bond ETF (FBND): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.