Core Insights - Financial advisors recommend staying invested rather than holding cash, with short-term bond funds being a viable option for this purpose [1] - Short-duration bonds help mitigate rate risk, especially amid uncertainty regarding U.S. Federal Reserve interest rate decisions [2] - Persistent inflation may lead to unexpected Fed policy shifts, making short-term bonds a protective measure due to their lower sensitivity to rate changes [3] Investment Strategy - Maximizing yield is crucial for fixed income investors, and short-term bond funds can protect assets from market volatility until cash needs arise [4] - Yields from short-term bond funds typically surpass those of money market savings accounts, which may not keep pace with inflation [5] Fund Options - Fidelity offers three short-term bond funds: 1. Fidelity Limited Term Bond ETF (FLTB) provides exposure to a variety of bond sources, including investment-grade and high-yield securities [8] 2. Fidelity Low Duration Bond ETF (FLDB) focuses on investment-grade debt securities with a duration of one year or less [8] 3. Fidelity Low Duration Bond Factor ETF (FLDR) tracks an index that balances interest rate and credit risk to improve returns and risk measures [8]