Fidelity Low Duration Bond Factor ETF

FLDR

Market cap $1.03B

The $1 billion AUM threshold is a big one for ETFs, and can indicate a fund has risen into a new tier. That news could arrive at just the right time for the Fidelity Low Duration Bond Factor ETF (FLDR).

Fidelity Low Duration Bond Factor ETF offers a 4.7% yield from investment-grade floating-rate debt with a low-risk profile. The fund maintains a short duration (0.89 years), 12% Treasury exposure, and a portfolio concentrated in financial issuers. FLDR has outperformed the broad bond benchmark BND since inception but slightly lags inflation and some peer ETFs in total return.

For the most part, financial advisors will tell their clients that it's better to stay invested than to let cash sit idle. One way to consider staying invested is through short-term bond funds — and Fidelity has a trio of ETFs that are worth considering just for this purpose.

For many investors, building a diversified portfolio is one of the first steps in investing. Fidelity Investments' extensive range of ETFs offers a powerful toolkit to achieve this.

In light of the economic, demographic and health quality changes that American retirees currently face, certain rules of thumb that many financial professionals have sworn by for decades are due for re-evaluation.

Investors shifting their focus to long-duration bonds may be overlooking a compelling opportunity in ultra-short and short-duration bonds. In the current economic environment, many investors are naturally drawn to the allure of long-duration bonds.

Fidelity Investment's investment-grade securitized ETF is seeing noteworthy investor attention in the current environment. The strong interest places the Fidelity Investment Grade Securitized ETF (FSEC) among the top 10 most popular active ETFs in 2025 to date, as measured by net flows, according to Kirsten Chang, senior industry analyst at VettaFi.

In the current environment, characterized by heightened volatility, now is the time to focus on greater portfolio diversification. The diversifying power of bonds has waned, underscored by bonds' correlation with equities during the recent market sell-off.

The Fidelity Low Duration Bond Factor ETF (FLDR) has something to celebrate. The ETF was bumped up to Gold rated by Morningstar recently.

Many investors are still sitting on the sidelines in cash, potentially missing out on the short duration fixed income segment. Importantly, investors sitting in cash via money market funds have earned a compelling rate without taking on much risk.