5 Fidelity ETFs That Pay Monthly For Retirees

Retirees are liking exchange-traded funds (ETFs) that offer dividends, but many of them pay out quarterly. What if you prefer monthly payouts? There are options.

For holders of Fidelity accounts, there are only a few of their proprietary ETFs that offer monthly income. Most pay quarterly. If you trade only with Fidelity, you might want to research the many non-Fidelity ETFs available to trade through Fidelity that offer monthly dividends. But here are five Fidelity-branded ETFs that are on a monthly schedule, most of them trading in bonds.

Fidelity Total Bond ETF (FBND)

The Fidelity Total Bond ETF (FBND) is aptly named, offering broad exposure to the bond markets, including diverse bond types and durations. U.S. government bonds account for 37% of the portfolio, followed by corporate bonds at 30.5% and mortgage-backed securities at 17.4%. Investment grade bonds account for 84.8% of the fund, followed by high-yield at 10.9% and emerging markets at 2.9%.

• Yield: 4.71%
• NAV: 46.11
• Expense ratio: 0.36%
• Assets under management: $23.44 billion
• One-year performance: 3.73%

Fidelity Corporate Bond ETF (FCOR)

The Fidelity Corporate Bond ETF (FCOR) is actively managed against the Bloomberg U.S. Credit Bond Index. About 90% of the portfolio consists of corporate bonds. Most of those holdings are rated A or BBB. About 7% is invested in U.S. Treasuries. The bonds are highly diversified across various durations.

• Yield: 4.47%
• NAV: 47.89
• Expense ratio: 0.36%
• Assets under management: $303.4 million
• One-year performance: 4.76%

Fidelity Municipal Bond Opportunities ETF (FMUB)

The Fidelity Municipal Bond Opportunities ETF (FMUB) invests at least 80% of the portfolio in municipal securities whose interest is exempt from federal income tax. Bonds from Texas, Illinois and Florida represent the largest share of holdings. Transportation, health care and corporate-backed bonds are the largest types of holdings.

• Yield: 3.47%
• NAV: 51.04
• Expense ratio: 0.3%
• Assets under management: $148.8 million
• One-year performance: 2.45%

Fidelity Enhanced High Yield ETF (FDHY)

The Fidelity Enhanced High Yield ETF (FDHY) seeks high income by investing in high-yield debt securities, or junk bonds. Its benchmark is the ICE BofA BB-B US High Yield Constrained Index. Managers use a qualitative model to identify companies unlikely to default. The bulk of the fund’s holdings are rated BB or B.

• Yield: 6.58%
• NAV: 49.35
• Expense ratio: 0.35%
• Assets under management: $464.45 million
• One-year performance: 2.59%

Fidelity Preferred Securities & Income ETF (FPFD)

The Fidelity Preferred Securities & Income ETF (FPFD) invests at least 80% in preferred securities and other income-producing securities. It uses the ICE BofA U.S. All Cap Securities Index as a benchmark. The FPFD portfolio is comprised of 68.58% bonds and 29.25% equities. Most of the bond holdings are rated BBB or BB.

• Yield: 5.06%
• NAV: 21.84
• Expense ratio: 0.59%
• Assets under management: $76.08 million
• One-year performance: 3.06%