How To Add Leverage Bonds To A Portfolio

Stock-still Income & Bonds Overview

Get more with Fidelity and iShares^® bail ETFs

Value
Select from a range of committee-complimentary bond ETFs for online purchase with low expense ratios to help you generate income.

Choice
Choose from a diversified offering of some of the most liquid and largest ETFs available to help round out your portfolio.

Expertise
Leverage the benefits of global research, investing ideas, and didactics, and the strength of 2 marketplace leaders.^†

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How tin I earn income with bail ETFs?

Bond ETFs generally pay a return on a stock-still schedule, though the amount of payments tin vary. Here's a hypothetical example of the income that could be generated from a bond ETF at the end of a yr, using an boilerplate yield of iii.5% on the bonds held in the ETF.

For analogy just. Graphic depicts a simplified relationship between average yield of bonds in ETF and market value. This elementary explanation is hypothetical and does non depict actual investment results and does not reflect taxes, fees, aggrandizement, or tracking errors. The assumed charge per unit of return used in this example is not guaranteed.

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Complimentary commission offer applies to online purchases of Fidelity ETFs and iShares ETFs in a Fidelity retail business relationship. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $i,000 of main).

ETFs are subject field to market fluctuation and the risks of their underlying investments. ETFs are subject area to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be college or lower than their NAV, and are not individually redeemed from the fund.

High-yield/not-investment-grade bonds involve greater cost volatility and hazard of default than investment-grade bonds.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

In general, the bond market is volatile, and stock-still income securities deport interest rate risk. (As interest rates rising, bond prices commonly fall, and vice versa. This effect is ordinarily more pronounced for longer-term securities.) Fixed income securities also conduct inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Dissimilar individual bonds, virtually bond funds do not take a maturity date, so belongings them until maturity to avert losses caused past price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

In general, stock-still income ETPs conduct risks similar to those of bonds, including involvement charge per unit risk (as involvement rates rise, bond prices unremarkably fall, and vice versa), issuer or counterparty default take a chance, issuer credit run a risk, inflation risk, and call risk. Unlike private bonds, many fixed income ETPs exercise not have a maturity date, so property a fixed income security until maturity to effort to avoid losses associated with bond price volatility is not possible with these types of ETPs. Certain fixed income ETPs may invest in lower-quality debt securities, which involve greater take chances of default or cost changes due to potential changes in the credit quality of the issuer.

Exchange-traded products (ETPs) are subject to market volatility and the risks of their underlying securities, which may include the risks associated with investing in smaller companies, foreign securities, bolt, and fixed income investments. Foreign securities are subject to involvement rate, currency substitution rate, economic, and political risks, all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector, are generally subject to greater market volatility, as well as to the specific risks associated with that sector, region, or other focus. ETPs that use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index information technology tracks considering of fees, expenses, and tracking error. An ETP may trade at a premium or disbelieve to its internet asset value (NAV) (or indicative value in the example of exchange-traded notes). The caste of liquidity can vary significantly from ane ETP to another and losses may be magnified if no liquid market exists for the ETP'due south shares when attempting to sell them. Each ETP has a unique take a chance profile, detailed in its prospectus, offering circular, or similar cloth, which should exist considered carefully when making investment decisions.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connexion with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in sure FBS platforms and investment programs. Please annotation, this security will not exist marginable for 30 days from the settlement engagement, at which fourth dimension it will automatically get eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock Inc., and its affiliates.

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Source: BlackRock ETP Global Landscape Report 9/30/2018. Based on number of ETFs, AUM, and market place share.

Before investing in any mutual fund or exchange-traded fund, y'all should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it advisedly.

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