Fidelity Investment Grade Bond ETF

FIGB

Market cap $296M

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.