In 2025, stocks are performing well, but don’t overlook fixed income in your portfolio. With improved bond yields of 4% or more and contained inflation, considering fixed income as part of asset allocation is wise. Fidelity offers 13 bond ETFs to navigate the current market challenges and Fed policy uncertainties in 2026.

Fidelity Total Bond ETF (NYSEMKT: FBND) provides total bond market exposure, including both investment-grade and junk bonds. With minimal exposure to non-U.S. and non-investment-grade bonds, FBND offers diversification and potential returns. As economic factors fluctuate in 2026, a strategic bond approach may mitigate risks and capture yields.

Fidelity Enhanced Yield ETF (NYSEMKT: FDHY) focuses on high-yield bonds using a factor-based approach for value and quality selection. Given the healthy U.S. economy and stable credit spreads, FDHY targeting higher quality bonds could offer a buffer in case of market downturns. Active management in bond ETFs may see benefits in 2026.

Fidelity Tactical Bond ETF (NYSEMKT: FTBD) combines total market coverage with tactical rotation based on valuation and quality. With global central banks nearing the end of rate-cutting cycles, security selection could yield alpha. Active management may be key in a stabilized yield environment for potential returns in 2026.

Read more at Yahoo Finance: Top 3 Fidelity Bond ETF Picks for 2026