The 5 Fidelity ETFs With The Highest Dividend Yields For Steady Income

"#5 Fidelity Preferred Securities & Income ETF (FPFD) This actively managed fund 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. #4 Fidelity Tactical Bond ETF (FTBD) This actively managed ETF seeks a high level of current income by investing in many types of bonds, including investment grade, high yield and even emerging markets."

"#3 Fidelity Sustainable High Yield ETF (FSYD) This fund is an environmental, social and governance (ESG) play for green investors, but it's also one of Fidelity's current highest dividend yielding ETFs. Managers seek a high level of income by investing at least 80% of the fund's assets in corporate debt securities rated below investment grade (also referred to as high yield debt securities or junk bonds). Investments are chosen based on companies that have improved sustainability practices."

Fidelity offers ETFs that can deliver income with low management fees, diversification and easy liquidity. ETFs provide exposure to hundreds or thousands of underlying bonds, stocks or other investments, so performance reflects aggregated asset price changes. Five Fidelity ETFs were yielding over 5% annual dividend as of Jan. 9. The FPFD fund focuses on preferred securities with at least 80% allocation, holding 68.58% bonds and 29.25% equities, with most bonds rated BBB or BB. The FTBD fund targets current income across investment-grade, high-yield and emerging-market bonds, with roughly 45% Treasuries and 39% corporate bonds. The FSYD is an ESG-focused high-yield fund investing at least 80% in below-investment-grade corporate debt and selects issuers with improved sustainability practices.

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