FLDR ETF

FLDR is a low duration bond fund: It invests in U.S. investment-grade floating rate notes and Treasury notes with a duration of 1 year or less. The fund has a low volatility profile: Its short duration and investment grade composition minimize interest rate and credit risk. The ETF's dividend will shrink: As interest rates move lower, the fund's yield will decrease.

The low duration ETF (FLDR) hit a 52-week high lately.

Fidelity Low Duration Bond Factor ETF offers low interest rate sensitivity and credit risk balance with a 5.55% yield and 0.88 years duration. The FLDR ETF primarily invests in investment-grade floating rate notes alongside US Treasury notes, with 80% of holdings in the Financials sector. The fund has high credit quality with the majority of positions rated AA and A, under 6 months duration, and a mix of global notes.

Speculation of a Fed rate cut is still present, with the Fed Funds futures market pricing a probability of a March 2024 Fed rate cut. The article suggests that the Fed will wait for consecutive months of below target inflation data before considering a cut. The Fidelity Low Duration Bond Factor ETF is a short-term bond fund that offers a high 30-day SEC yield.

Rising rates in 2023 changed the environment significantly for fixed income. Suddenly, investors were chomping at the bit to add more bonds to their portfolios, particularly in short-maturity strategies, as yields became more attractive.