At a glance
FLDR charges 0.15% a year, above the 0.06% average of the 7 funds most like it (the 7th cheapest of 8). It has $2.22B in assets, the 8th largest of that group; it paid 4.16% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.4% with distributions reinvested, the best of those 8 funds; over three years it returned +5.4% a year. At its worst it fell 12.2% in the 2020 crash (S&P 500: 33.7%) and 2.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 7 months after the lows. Its ten largest positions make up 11.5% of the fund, out of 373 in all.
The short version
Fidelity Low Duration Bond Factor ETF (FLDR) tracks a Fidelity index that mixes investment-grade floating-rate corporate notes with U.S. Treasury notes. The mix targets a duration (a measure of how much prices react to interest rates) of one year or less. It pays monthly, with a trailing 12-month yield of 4.16% as of October 27, 2026. Its 0.15% expense ratio is well above the 0.06% average of similar funds.
Price history
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FLDR +3.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FLDR official prospectus, to Oct 30, 2026 | — | +5.46% | — | +3.35% | — | +3.19% |
| IXXXY index, same period | — | +4.15% | — | +2.74% | — | +2.47% |
| IXQB0 index, same period | — | +5.62% | — | +3.52% | — | +3.39% |
| LB001 index, same period | — | +7.30% | — | -0.36% | — | +2.13% |
| FLDR price data to Oct 27, 2026 | +2.7% | +3.4% | +5.4% | +4.0% | — | +3.3% |
- Over the year to Oct 27, 2026, FLDR returned +3.4%, 1st of 8 among similar funds.
- Its 5-year annualized return was +4.0%.
- In the 2020 COVID crash it fell 12.2% and regained its old high 2.8 months after the low.
- Its worst full calendar year was 2022 (-0.3%); its best was 2023 (+6.3%).
- The deepest fall in its price history was 12.2% (Mar 5, 2020 to Mar 20, 2020), recovered by Jun 12, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.7% | — |
| 2025 | +5.4% | +5.46% |
| 2024 | +6.2% | +5.73% |
| 2023 | +6.3% | +6.39% |
| 2022 | -0.3% | -0.56% |
| 2021 | -0.2% | -0.04% |
| 2020 | +2.0% | +1.98% |
| 2019 | +4.5% | +4.51% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 8.4% over that stretch · deepest drop along the way 12.2%, back to its old high 2.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 1.6% over that stretch · deepest drop along the way 2% |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5000 | |
| 2025 | $2.3600 | -20.3% |
| 2024 | $2.9620 | +12.2% |
| 2023 | $2.6400 | +151.4% |
| 2022 | $1.0500 | +303.8% |
| 2021 | $0.2600 | -59.4% |
| 2020 | $0.6400 | -53.3% |
| 2019 | $1.3700 |
What's inside
As of Aug 31, 2026, the fund held 373 securities; the ten largest made up 11.5% of assets.
| Holding | Weight | |
|---|---|---|
| UST NOTES Bonds and notes | 1.80% | |
| UST NOTES Bonds and notes | 1.73% | |
| UST NOTES Bonds and notes | 1.20% | |
| UST NOTES Bonds and notes | 1.06% | |
| UST NOTES Bonds and notes | 1.03% | |
| UST NOTES Bonds and notes | 0.99% | |
| THE TORONTO DOMINION BANK Bonds and notes | 0.99% | |
| UST NOTES Bonds and notes | 0.92% | |
| RABOBANK NEDERLAND NEW YORK BRH Bonds and notes | 0.90% | |
| UST NOTES Bonds and notes | 0.89% | |
| UST NOTES Bonds and notes | 0.88% | |
| TOYOTA MOTOR CREDIT CORP Bonds and notes | 0.86% | |
| MACQUARIE BANK LTD Bonds and notes | 0.85% | |
| NORDEA BANK ABP Bonds and notes | 0.83% | |
| AMERICAN EXPRESS CO Bonds and notes | 0.79% |
By country
United States 59.23%Australia 10.16%Canada 7.51%United Kingdom 6.37%Japan 5.84%By issuer
Companies 86.33%US Treasury 12.49%The bonds mature in 2.8 years on average (weighted by size), with an average coupon of 4.45%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $604.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.39%, +0.13%, +0.32%.
How it works
FLDR is an index fund. Before fees, it aims to match the Fidelity Low Duration Investment Grade Factor Index, which Fidelity builds with its own rules. The index holds only two kinds of bonds: U.S. investment-grade floating-rate notes and U.S. Treasury notes. A floating-rate note pays interest that resets with a short-term benchmark plus a fixed spread. The benchmark is often SOFR, the Secured Overnight Financing Rate. Because the interest resets, the note's price tends to stay fairly steady when rates move. Treasury notes pay a fixed rate, so their prices react more to rate changes.
The index sets the mix between the two groups to hit a target duration of one year or less. As of August 31, 2026, about 86% of the fund was in corporate notes and about 12% in Treasuries. The largest positions were Treasury notes maturing between 2033 and 2036. Next came floating-rate notes from Toronto-Dominion Bank, Rabobank, Toyota Motor Credit, Macquarie Bank and Nordea Bank. Within the corporate group, each note is weighted by market value, and no single issuer can go above 3.5%.
The fund doesn't own every bond in the index. It uses sampling to hold a smaller set that matches the index on duration, maturity and credit quality. That set was 373 issues as of August 31, 2026. The fund also lends out securities for extra income. It may handle creations and redemptions in cash instead of bonds, which can make it less tax-efficient than some ETFs.
What it really costs
- FLDR charges 0.15% a year, versus an average of 0.06% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FLDR | $15 | $48 | $85 | $192 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its short duration and investment-grade holdings have produced small yearly swings, with one sharp exception in March 2020.
FLDR could serve as a low-volatility bond holding for money needed in the next few years. Its official calendar-year returns ranged from -0.56% in 2022, its worst year, to 6.39% in 2023. In the 2022 bear market, its price fell 2% and took about 6.5 months to recover. March 2020 was different: the market price dropped 12.2%, even though the fund's official loss for that quarter was 2.2%. The price recovered by June 12, 2020, but anyone raising cash at the low would have locked in a much deeper loss. The fund launched in 2018, so it has no record from 2008.
It pays monthly, with a trailing yield of 4.16% as of October 27, 2026. That income tends to fall when short-term rates fall. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income from short-term investment-grade bonds with small price swings; one-year volatility was 0.8% as of October 27, 2026.
- Savers who want much less interest-rate risk than intermediate corporate bond funds such as VCIT, whose holdings average 8.2 years to maturity.
- Those wanting a holding that has barely moved with stocks; its one-year beta, a measure of sensitivity to the stock market, was 0.02.
Look elsewhere if
- Cost-focused investors: the 0.15% expense ratio ranks 7th of 8 similar funds and compares with 0.03% at VCSH and 0.04% at IGSB.
- Anyone wanting income that holds up when short-term rates fall, since floating-rate coupons reset lower and usually yield less than fixed-rate notes.
- Investors wary of concentration in financial firms; top corporate holdings include Toronto-Dominion Bank, Rabobank, Macquarie Bank, Nordea Bank and American Express.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FLDR this fund | 2.8 yrs | 0.15% | $2.22B | +3.4% | +5.4% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| SPIB SPDR Portfolio Intermediate Term Corporate … | 5.6 yrs | 0.04% | $11.57B | 0.0% | +6.1% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| USIG iShares Broad USD Investment Grade Corporat… | 10.3 yrs | 0.04% | $17.85B | -0.9% | +5.7% |
Questions investors ask
Does FLDR pay monthly dividends?
Yes. FLDR pays income monthly. Over the 12 months to October 27, 2026, it paid $2.08 per share, a trailing yield of 4.16%. The amount can change. Most of the fund is in floating-rate notes, whose interest resets with short-term benchmark rates. If those rates fall, the fund's monthly payments will usually shrink too. If rates rise, payments tend to grow.
Is FLDR a safe place to park cash?
Not in the way a bank account is. FLDR isn't a bank deposit, isn't FDIC-insured and can lose money. Its yearly swings have been small: its worst calendar year was 2022, at -0.56%. But in March 2020 its market price fell 12.2% in about two weeks before recovering by June 12, 2020. About 86% of the fund is in corporate notes, many from banks, so it carries credit risk.
What's the difference between FLDR and JPST?
Both are short-term, investment-grade income ETFs, but JPST is far bigger. It had $41.1 billion in net assets as of August 31, 2026, against FLDR's $2.2 billion. FLDR's 0.15% expense ratio is a little below JPST's 0.18%. FLDR's holdings averaged 2.8 years to maturity, compared with 2 years for JPST. FLDR returned 3.4% over one year and 5.4% a year over three years as of October 27, 2026. JPST returned 3.5% and 4.9% as of October 29, 2026.
How does FLDR do when interest rates rise?
Better than most bond funds, though not perfectly. Floating-rate notes reset their interest higher as rates rise, and the index keeps duration at one year or less. In the 2022 bear market, when rates rose sharply, FLDR's price fell 2% between January 3 and June 22, 2022. It recovered by January 6, 2023. Its official return for calendar 2022 was -0.56%. Its Treasury notes, which mature between 2033 and 2036, add some rate sensitivity.
What is FLDR's expense ratio?
FLDR charges 0.15% a year, according to its prospectus filed October 27, 2026, and there is no fee waiver. In the SEC's standard example ($10,000 invested, a 5% yearly return), total costs come to about $15 after one year, $48 after three, $85 after five and $192 after ten. That's well above the 0.06% average of similar bond funds. VCSH charges 0.03%, and IGSB and SPIB charge 0.04%.