##  [# New Fidelity ETF Tracks Booming Bond Market ](/sections/daily-etf-watch/new-fidelity-etf-tracks-booming-bond-market) 

 

# New Fidelity ETF Tracks Booming Bond Market 

 

 

 The fund’s launch comes as fixed income exchange-traded funds have lured $22 billion this year.



 

 

 

 

 [![ShubhamSaharan_white_bg](/sites/default/files/styles/author_image_icon/public/2023-03/Shubham2.png?itok=cXdHa411)](/contributors/shubham-saharan) 

[By Shubham Saharan](/contributors/shubham-saharan)

 Jan 26, 2023

 Edited by: Shubham Saharan

 

 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 

 

Fidelity Investments is adding to its lineup of fixed income products with its latest exchange-traded fund addition as the asset class increasingly lures investors.

The [Fidelity Tactical Bond ETF (FTBD)](https://www.sec.gov/ix?doc=/Archives/edgar/data/1562565/000137949123000021/filing1507636.htm) launched Thursday, charging an expense ratio of 0.55% and is available for trading via the firm’s own brokerage platforms.

The actively managed ETF will invest “at least 80%” of assets within bonds and their repurchase agreements. Investments will span the fixed income market, and include investment grade, high yield and emerging market bonds, according to a company statement.

FTBD will be managed by Jeffrey Moore and Michael Plage.

The fund’s launch comes as investors are increasingly turning to fixed income products and shirking equities. Bond funds, often considered safe havens during economic downturns, have absorbed $21.7 billion in the first three weeks of the year, according to ETF.com data. That’s the most inflows any asset class has seen in 2023.

Among the top-performing funds of last week were the [**Schwab Short-Term U.S. Treasury ETF (SCHO)**](https://www.etf.com/SCHO) and the [**iShares JP Morgan USD Emerging Markets Bond ETF (EMB)**](https://www.etf.com/EMB), which collectively brought in nearly $3.1 billion, according to ETF.com data.

Executives from across the largest issuers have predicted that fixed income funds would be the stars of this coming year, as heightened volatility and decades-high interest rates put pressure on equity market returns.

“The role of bonds in the portfolio is increasingly relevant for the first time in years,” BlackRock’s CEO Larry Fink said during the firm’s fourth-quarter earnings call with analysts and investors.

U.S.-listed bonds are expected to be high-returners and an enticing portfolio-add this year, according to Vanguard analysts.

“We now expect U.S. bonds to return 4.1%-5.1% per year over the next decade, compared with the 1.4%-2.4% annual returns we forecast a year ago,” Vanguard analysts said in the company’s economic and market outlook for 2023, in reference to the domestic fixed income market.

*Contact Shubham Saharan at [*shubham.saharan@etf.com*](mailto:shubham.saharan@etf.com)



 

 

 [ Shubham Saharan ](/contributors/shubham-saharan) 

 

 

  Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a…   [View Bio](/contributors/shubham-saharan)

 



 

 


 Related Topics  [Fixed Income](http://www.etf.com/topics/fixed-income) 

 [Active Management](http://www.etf.com/topics/active-management) 

 [Emerging Markets](http://www.etf.com/topics/emerging-markets) 

 [Bond](http://www.etf.com/topics/bond)