What Is FLDR? Fidelity Low Duration Bond Factor ETF
Last updated July 2026
Short answer
FLDR is the Fidelity Low Duration Bond Factor ETF. It holds US investment-grade floating-rate notes plus US Treasuries, keeping duration near one year so the price barely moves when rates change while the yield resets with them. It yields about 4.33% and costs 0.15%. Investors use it as a step up from cash that takes on modest credit risk rather than rate risk.
FLDR is issued by Fidelity and tracks Fidelity Low Duration Investment Grade Factor Index. It charges a 0.15% expense ratio, holds approximately 1.95B in assets under management, yields about 4.33%, and launched in June 2018.
What is FLDR?
FLDR is the Fidelity Low Duration Bond Factor ETF. It holds US investment-grade floating-rate notes plus US Treasuries, keeping duration near one year so the price barely moves when rates change while the yield resets with them. It yields about 4.33% and costs 0.15%. Investors use it as a step up from cash that takes on modest credit risk rather than rate risk.
FLDR is issued by Fidelity and tracks Fidelity Low Duration Investment Grade Factor Index, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
What does FLDR hold?
FLDR does not hold a basket of individual stocks. It gets its exposure synthetically, through derivatives such as swaps and futures rather than by owning the underlying shares, so there is no conventional top-10 equity holdings list. See the description above for what FLDR actually tracks and how that exposure is built.
How do I invest in FLDR?
There are three common ways to get FLDR exposure. Buy shares (or fractional shares) of FLDR directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so FLDR sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. FLDR trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is FLDR a good buy?
Whether FLDR is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Fidelity Low Duration Investment Grade Factor Index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is FLDR a buy?
The bottom line on FLDR
FLDR is a short-duration income holding, not a growth one. The floating-rate structure is what makes it different from a normal bond fund: you take credit risk instead of interest-rate risk. That is attractive when rates are high or rising and less attractive once they fall, because the coupons reset downward too. Compare it with SGOV if you want no credit risk at all, and with BND if you actually want duration.
More on FLDR
Whether FLDR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is FLDR a buy?
FLDR yields 4.33% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see FLDR dividend: yield and schedule.
New to funds like FLDR? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how FLDR fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in FLDR with AI
Connect the broker you already use and ask Walnut's AI how FLDR fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is FLDR?
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FLDR is the Fidelity Low Duration Bond Factor ETF, issued by Fidelity. It tracks the Fidelity Low Duration Investment Grade Factor Index, holding US investment-grade floating-rate notes alongside US Treasury notes. It targets a duration near one year, so it behaves like a short-duration income fund rather than a typical bond fund.
What does FLDR hold?
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A mix of US investment-grade corporate floating-rate notes and US Treasury notes, roughly 87% corporate and 12% government across about 350 securities as of August 2026. Weighted average maturity is around 2.5 years, but because the corporate portion floats, effective duration stays near one year.
What is FLDR's expense ratio?
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0.15% as of August 2026. That is more than an ultra-short Treasury fund like SGOV at 0.09% and well below most actively managed short-duration bond funds. On a $10,000 position it works out to about $15 a year.
What is FLDR's yield?
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Around 4.33% as of August 2026, distributed monthly. Because the floating-rate portion resets with short-term rates, that yield moves up and down with Fed policy rather than staying fixed. Treat any quoted yield as a snapshot, not a promise.
Is FLDR a good place to park cash?
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It is a step beyond cash rather than a cash equivalent. Duration near one year means the price moves a little, and the corporate holdings carry investment-grade credit risk that Treasury bills do not. If you want something that behaves like cash, SGOV or a money market fund is the closer match. Walnut is not an investment adviser; this is descriptive, not a recommendation.
FLDR vs SGOV: what is the difference?
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SGOV holds only US Treasury bills maturing within three months, so it has almost no duration and no credit risk. FLDR holds mostly investment-grade corporate floating-rate notes with some Treasuries, targeting duration near one year. FLDR generally yields more and can lose a little value in a credit selloff; SGOV is the more conservative of the two.
FLDR vs BND: what is the difference?
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BND holds the broad US investment-grade bond market with a duration around six years, so it gains when rates fall and loses when they rise. FLDR keeps duration near one year, so it barely responds to rate moves in either direction. BND is a bet on duration; FLDR deliberately avoids one.
Why do floating-rate notes matter here?
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A floating-rate note resets its coupon as short-term rates move, so its price stays close to par instead of falling when rates rise. That is why FLDR can hold securities with a 2.5-year average maturity and still behave like a one-year bond fund. The trade-off is that when rates fall, the coupons reset downward and the income drops.
Does FLDR pay monthly?
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Yes. FLDR normally distributes income monthly and capital gains annually. The monthly amount varies with the level of short-term rates, since much of the portfolio floats.
What are the risks of FLDR?
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Credit risk, mainly. The portfolio is around 87% corporate, so it can fall in a broad credit selloff even though rate risk is minimal. Income also falls when short-term rates fall, which is the flip side of the floating-rate structure. It is not principal-protected and is not a substitute for an insured deposit.
Is FLDR good for a rising-rate environment?
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That is the case the structure is built for. Because coupons reset upward as short-term rates rise, FLDR avoids most of the price loss a longer-duration fund takes in the same environment. The mirror image is that it gives up the price gain a longer fund captures when rates fall.
How do I buy FLDR?
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FLDR trades like any stock during US market hours through any broker: Fidelity, Schwab, Robinhood, Public, Vanguard, and others. Fractional shares are supported at most modern brokers. If you connect your broker to Walnut, the AI can show how a short-duration holding like FLDR sits alongside the rest of your portfolio.
Is FLDR a good investment?
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It depends on the job you want it to do. FLDR suits someone who wants more yield than cash without taking interest-rate risk, and who accepts investment-grade credit risk in exchange. It is not a growth holding and not a cash equivalent. Walnut is not an investment adviser; this is not a recommendation.
When did FLDR launch?
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June 2018. It has since grown to roughly $1.95 billion in assets as of August 2026, making it one of the larger short-duration factor funds, though far smaller than the broad bond and T-bill ETFs it is often compared with.
How do I compare FLDR to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. FLDR's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against Fidelity's fund page or your broker before investing.