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Fidelity Low Duration Bond ETF FLDB targets maturity of 2 years or less

FLDB charges 0.20% annually, actively invests in domestic and foreign debt, and reported a 3.9% NAV return over the last 12 months through Aug. 31, according to Fidelity data.

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The Fidelity Low Duration Bond ETF (FLDB) is positioned for a shifting bond market, with the strategy targeting a dollar weighted average maturity of two years or less, and allocating to both domestic and foreign issued debt. ETF Trends notes that the recent moves in the yield curve, driven by pressure on 10 and 30 year yields from debt, carry trade concerns, and geopolitics, can weigh on bond prices, which is why short duration exposure may appeal if that volatility persists.

FLDB charges 20 basis points to actively manage its portfolio, and the fund’s active managers consider its benchmark while also evaluating issuer credit quality, valuations, and short term trading opportunities, according to the article.

ETF Trends also highlights that FLDB uses Fidelity data showing a 3.9% NAV return over the last 12 months as of Aug. 31, alongside a 4.18% 30 day SEC unsubsidized yield as of Sept. 8, and the fund is scheduled to mark its three year ETF milestone in February 2027.

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