Fidelity Total Bond Fund: A Morningstar Analysis

Overview

The Fidelity Total Bond Fund (FTBFX) is a diversified bond fund that invests in a wide range of fixed-income securities. The fund's objective is to provide investors with a high level of current income and capital preservation. FTBFX has a long history of delivering solid returns, making it a popular choice for both individual and institutional investors.

Key Features

• Broad diversification: FTBFX invests in a wide range of fixed-income securities, including government bonds, corporate bonds, and mortgage-backed securities. This diversification helps to reduce the fund's risk profile.
• High income: FTBFX has a high yield, making it an attractive option for investors seeking current income. The fund's yield is currently 5.04%.
• Low expenses: FTBFX has a low expense ratio of 0.48%. This means that more of your investment goes towards growing your wealth and less towards paying fees.
• Long track record: FTBFX has been around for over 30 years, giving investors confidence that it is a well-managed fund.

Morningstar Analysis

Morningstar is a leading provider of investment research and analysis. Morningstar has awarded FTBFX a 5-star rating, its highest rating. This rating indicates that FTBFX is a well-managed fund with a solid track record and low expenses.

Morningstar analysts have praised FTBFX for its consistent performance and its ability to provide investors with a high level of income. They also note that FTBFX is a well-diversified fund, which helps to reduce its risk profile.

Performance

FTBFX has a long history of delivering solid returns. Over the past 10 years, the fund has returned an average of 5.76% per year. This return is well above the average return for bond funds.

In 2022, FTBFX returned -12.56%. This was a difficult year for bond funds, as rising interest rates caused bond prices to fall. However, FTBFX outperformed the average bond fund, which lost -14.54% in 2022.

Fees

FTBFX has a low expense ratio of 0.48%. This is below the average expense ratio for bond funds. This means that more of your investment goes towards growing your wealth and less towards paying fees.

Who Should Invest in FTBFX?

FTBFX is a good option for investors who are seeking a high level of current income and capital preservation. The fund's diversified portfolio and low expenses help to make it a solid investment option.

FTBFX is particularly well-suited for investors who are in or nearing retirement. These investors often need a reliable source of income to supplement their Social Security benefits and pension payments. FTBFX can provide this income while also preserving the investor's capital.

How to Invest in FTBFX

You can invest in FTBFX through a variety of channels, including:

• Fidelity Brokerage Services
• Fidelity Investments
• Charles Schwab
• Vanguard
• TD Ameritrade

You can also invest in FTBFX through a financial advisor.

Conclusion

The Fidelity Total Bond Fund is a well-managed fund with a solid track record and low expenses. The fund's diversified portfolio and high yield make it a good option for investors who are seeking a high level of current income and capital preservation.

Additional Information

Website: https://www.fidelity.com/mutual-funds/fidelity-total-bond-fund

Phone: 1-800-343-3548

Investment Minimum: $2,500

Expense Ratio: 0.48%

Yield: 5.04%

Morningstar Rating: 5 stars

Tables

Table 1: FTBFX Performance

Table 2: FTBFX Fees

Table 3: FTBFX Holdings

Table 4: FTBFX Morningstar Rating