At a glance
FXED charges 1.89% a year, above the 0.14% average of the 7 funds most like it (the most expensive of 8). It has $39.3M in assets, the 8th largest of that group; it paid 7.61% of its price in distributions over the past 12 months, monthly. Over the past year it returned −4.5% with distributions reinvested, the weakest of those 8 funds; over three years it returned +7.0% a year. Its ten largest positions make up 23.2% of the fund, out of 61 in all.
The short version
Sound Enhanced Fixed Income ETF (FXED) is an actively managed fund. It mixes investment-grade and high-yield bonds with preferred stock and shares of business development companies (BDCs), which are firms that lend to private businesses. It aims for high monthly income: its trailing 12-month yield was 7.61% as of October 27, 2026. The trade-off is cost. Its 1.89% expense ratio is far above the 0.14% average of similar bond funds.
Price history
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FXED -4.5% 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 | |
|---|---|---|---|---|---|---|
| FXED official prospectus, to Dec 31, 2025 | — | +5.19% | — | +3.74% | — | — |
| FXED price data to Oct 27, 2026 | -4.2% | -4.5% | +7.0% | — | — | +5.2% |
- Over the year to Oct 27, 2026, FXED returned -4.5%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+5.8%); its best was 2024 (+7.3%).
- The deepest fall in its price history was 8.9% (Oct 17, 2024 to Apr 8, 2025), recovered by Jul 22, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -4.2% | — |
| 2025 | +5.8% | +5.19% |
| 2024 | +7.3% | +6.43% |
| 2023 | — | +15.25% |
| 2022 | — | -15.22% |
| 2021 | — | +9.73% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Apr 3, 2023 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7600 | |
| 2025 | $1.2500 | -20.9% |
| 2024 | $1.5800 |
What's inside
As of Aug 31, 2026, the fund held 61 securities; the ten largest made up 23.19% of assets, and 13.43% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Golub Capital BDC Inc | 2.67% | |
| Sixth Street Specialty Lending | 2.55% | |
| Hercules Capital Inc | 2.29% | |
| American Financial Group Inc/OH Preferred stock | 2.28% | |
| EQUITABLE HOLDINGS INC Preferred stock | 2.26% | |
| DTE Energy Co Preferred stock | 2.24% | |
| Prudential Financial Inc Preferred stock | 2.24% | |
| NEXTERA ENERGY CAPITAL Preferred stock | 2.22% | |
| TRUIST FINANCIAL CORP Preferred stock | 2.22% | |
| BANK OF AMERICA CORP Preferred stock | 2.21% | |
| Ares Capital Corp | 2.20% | |
| JPMORGAN CHASE & CO Preferred stock | 2.19% | |
| VanEck Emerging Markets High Yield Bond ETF | 2.18% | |
| Wells Fargo & Co Preferred stock | 2.16% | |
| CMS Energy Corp Preferred stock | 2.13% |
By country
United States 98.66%By issuer
Companies 91.03%Other registered funds 7.63%The bonds mature in 14.9 years on average (weighted by size), with an average coupon of 5.41%.
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 $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.26%, -0.54%, +0.18%.
What it really costs
- FXED charges 1.89% a year, versus an average of 0.14% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.49% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $192 in the first year and $2,212 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FXED | $192 | $594 | $1,021 | $2,212 |
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
FXED is built to pay high monthly income from bonds, preferred stock and BDC shares, not to be a stable bond anchor.
FXED’s main draw is income. It pays monthly, and its trailing 12-month yield was 7.61% ($1.25 per share) as of October 27, 2026. Much of that income comes from BDCs, preferred stock and junk bonds, which can fall together when credit markets weaken. The fund launched in December 2020, so it has no record from 2008 or the 2020 crash. It lost 15.22% in 2022, its worst calendar year, including a 10.9% drop in the second quarter alone. Anyone drawing income then would have had to cash out shares at lower prices. In price data since April 2023, its deepest drop was 8.9%, from October 2024 to April 2025. It recovered in about 3.4 months. Cost is a steady drag: the SEC’s standard example shows $2,212 in expenses on $10,000 over 10 years. 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
- Income seekers who value monthly payouts and accept a 7.61% trailing yield (as of October 27, 2026) that comes partly from BDCs and preferreds.
- Investors wanting one actively managed fund that blends investment-grade bonds, junk bonds, preferred stock and BDC shares instead of buying each separately.
- Holders comfortable with heavy financial-sector exposure, including preferreds from Bank of America, JPMorgan Chase, Wells Fargo, Truist and Prudential.
Look elsewhere if
- Cost-focused investors: the 1.89% expense ratio ranks 8th of 8 among similar funds, which average 0.14%. AGG and BND charge 0.03%.
- Those wanting a steady bond anchor: FXED lost 15.22% in 2022, and about 32% of its assets are in stocks, including BDC shares.
- Investors who prefer large, established funds. FXED had about $39.3 million in net assets as of August 31, 2026, the smallest in its comparison group.
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 |
|---|---|---|---|---|---|
| FXED this fund | 14.9 yrs | 1.89% | $39.3M | -4.5% | +7.0% |
| PULS PGIM Ultra Short Bond ETF | 8.8 yrs | 0.15% | $18.71B | +4.1% | +5.2% |
| FBND Fidelity Total Bond ETF | 14.4 yrs | 0.36% | $28.16B | -0.2% | +5.4% |
| MINT PIMCO Enhanced Short Maturity Active Exchan… | 6.3 yrs | 0.35% | $16.43B | +3.9% | +4.9% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| SCHZ Schwab U.S. Aggregate Bond ETF | 12.5 yrs | 0.03% | $10.60B | -1.1% | +5.2% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
Questions investors ask
Does FXED pay monthly dividends?
Yes. FXED pays distributions monthly. In the 12 months to October 27, 2026, it paid $1.25 per share, a trailing yield of 7.61%. The income comes from bond interest, preferred stock dividends and payouts from business development companies (BDCs) and real estate investment trusts (REITs). Payments can change. BDC and REIT dividends depend on how their borrowers and properties perform, and a high yield often comes with higher credit risk.
What is FXED's expense ratio?
FXED's expense ratio is 1.89%, according to its prospectus filed March 26, 2026. That is the highest among the eight funds compared, which include FXED and seven similar bond funds. Those seven average 0.14%. The management fee is 0.49%, so other costs make up most of the total. In the SEC's standard example, a $10,000 investment earning 5% a year would cost about $192 in the first year and $2,212 over 10 years.
Is FXED good for retirement income?
FXED may suit retirees who want high monthly income and can accept more risk than a core bond fund carries. Its trailing yield was 7.61% as of October 27, 2026. But it mixes junk bonds, preferred stock, BDCs and REITs, and the prospectus says it leans toward financial companies. It lost 15.22% in 2022, including a 10.9% drop in the quarter ending June 30, 2022. Its 1.89% expense ratio also reduces returns every year.
What's the difference between FXED and FBND?
FBND, the Fidelity Total Bond ETF, is a much larger, lower-cost broad bond fund. FXED adds preferred stock, BDCs and REITs for extra income. Their bond holdings have similar average maturities: 14.9 years for FXED and 14.4 for FBND. FBND charges 0.36% a year, compared with 1.89% for FXED. FXED returned -4.5% over one year and 7% a year over three years through October 27, 2026. FBND returned -0.2% and 6% through October 30, 2026.
Is FXED a bond fund or a stock fund?
FXED is classed as a bond fund, but much of it behaves like stock. As of August 31, 2026, 37.16% of assets were in bonds and notes, 29.69% in preferred stock and 31.82% in stocks. The largest stock holdings were BDCs: Golub Capital BDC (2.67%), Sixth Street Specialty Lending (2.55%) and Hercules Capital (2.29%). Because of this mix, FXED can fall when stocks drop, not only when interest rates rise.