If you are on the hunt for steady income in 2025, Fidelity bonds might just be your best bet. With the unpredictable swings of the stock market and the challenges in other income-generating investments, bonds offer a safe harbor.

Plus, Fidelity’s lineup of bond funds combines reliability with competitive yields. This makes them a great choice for any income-focused portfolio.

Why Fidelity Bonds Should Be in Your Portfolio in 2025

Fidelity bonds are a powerful tool for generating steady income while keeping your risk levels in check. Unlike dividend-paying stocks, which can slash payouts during a downturn, bonds deliver fixed payments on a predictable schedule. Even when markets shake, bondholders still get paid.

For 2025, Fidelity’s selection of bond funds stands out because of their low expense ratios and solid yields.

Freepik / Funds like the Fidelity Total Bond ETF (FBND) and the Fidelity Preferred Securities and Income ETF (FPFD) offer a blend of strong returns and manageable fees.

This balance ensures you are not sacrificing earnings to cover costs, which is a key factor when building a dependable income stream.

Fidelity Total Bond ETF (FBND)

This is a classic choice for anyone looking to diversify their bond investments. The Fidelity Total Bond ETF (FBND) features an expense ratio of just 0.36%, paired with a trailing 12-month yield of 4.5%. That means you are earning a competitive return without breaking the bank on fees.

However, FBND spreads its investments across various bond types, including government, corporate, and securitized debt. This diversification helps stabilize your income. If one sector falters, others can help cushion the blow.

Fidelity Conservative Income Bond Fund (FCNVX)

FCNVX is tailor-made for conservative investors who prioritize stability above all else. With its 5.1% yield, it is one of the highest-yielding options in Fidelity’s lineup, and the ultra-low expense ratio keeps more of your returns intact.

This fund focuses on short-term, high-quality bonds, minimizing the impact of interest rate fluctuations. For those looking for a rock-solid option to anchor their portfolio, FCNVX checks all the boxes.

So, it is reliable, cost-effective, and perfect for steady income in uncertain times.

Fidelity Corporate Bond ETF (FCOR)

For those who want a bit more yield, the Fidelity Corporate Bond ETF (FCOR) is a top-tier pick. With a 4.2% trailing yield and the same low expense ratio of 0.36%, this fund zeroes in on corporate debt. This is a sweet spot for earning higher interest payments.

George / Pexels / FCOR focuses on investment-grade corporate bonds. So, you are not stepping into overly risky territory.

You bet! It is a smart way to boost income while keeping an eye on quality.

Fidelity Preferred Securities and Income ETF (FPFD)

If you are seeking a bit of extra yield, the Fidelity Preferred Securities and Income ETF (FPFD) delivers. With a trailing 12-month yield of 4.6% and an expense ratio of just 0.35%, this fund offers a compelling option for 2025.

Preferred securities are like a hybrid between bonds and stocks. They typically offer higher yields than traditional bonds but still maintain some stability. FPFD’s diversified approach ensures your income remains consistent, even if some sectors hit a rough patch. For income-focused investors, it is a standout choice.

Fidelity Mortgage Securities Fund (FMSFX)

Don’t overlook the Fidelity Mortgage Securities Fund (FMSFX). While it is slightly pricier, with an expense ratio of 0.44%, it offers a respectable yield of 3.9%. This fund specializes in mortgage-backed securities, which can provide a stable and consistent income stream.

Sure! Mortgage-backed securities might sound complex. But they are essentially pools of home loans packaged into investments. When borrowers make their payments, you get paid.