Fidelity Investment Grade Bond ETF

FIGB

Market cap $435M

As the market continues to move deeper into the first quarter of 2026, the fixed income landscape calls for more stability. A new U.S. Federal Reserve chairman and ongoing market uncertainty could lead to more volatility ahead.

FIGB carries a much higher expense ratio but offers a slightly higher dividend yield than VGIT. VGIT has experienced a smaller maximum drawdown and better four-year risk-adjusted returns.

IGIB carries a much lower expense ratio and a slightly higher yield compared to FIGB FIGB has a lower beta, signaling less sensitivity to equity markets, but has underperformed IGIB on 1-year returns. Both ETFs are ultra-diversified, but IGIB holds far more bonds and has significantly greater assets under management These 10 Stocks Could Mint the Next Wave of Millionaires ›

FBND is far larger, more diversified, and offers a higher yield than FIGB. Both ETFs share identical expenses and have delivered matching 1-year returns as of Jan. 9, 2026.

The ETF wrapper has helped investors craft even more customized portfolios to meet their goals. With its transparency, flexibility, and tax efficiency, the wrapper has empowered asset managers to build increasingly discreetly packaged strategies that serve as building blocks.

Fidelity Investment Grade Bond ETF offers an active approach to tracking the Bloomberg U.S. Aggregate Bond Index, with a slight performance edge. FIGB is overweight U.S. Treasuries and BBB-rated bonds, positioning it to benefit from anticipated interest rate cuts in 2026. Given its 6.1-year duration, FIGB is expected to deliver approximately 7% total return in 2026 from both yield and rate-driven gains.

Fidelity has a pretty impressive roster of retiree-friendly ETFs (Exchange-Traded Funds), many of which have dividend yields on the high end.

The second half of 2024 appears increasingly favorable for actively managed bond ETFs. Michael Plage, CFA, portfolio manager at Fidelity Investments, talked active fixed income investing in the Third Quarter Fixed Income Symposium hosted on the VettaFi platform.

Thought leaders and portfolio managers across the industry weighed in on the direction of fixed income investments during the Q3 Fixed Income Symposium hosted by VettaFi.

The interest rate narrative remains complex, with conflicting economic data resulting in an ever-shifting tide of investor sentiment. For investors looking to capture income opportunities through high quality bonds, the Fidelity Investment Grade Bond ETF (FIGB) is a fund to consider.