Core Insights - The Fidelity Total Bond ETF (FBND) is favored by investors seeking steady monthly payouts with a yield of 4.62% and a focus on stability through investment-grade bonds [1][3] - Investors looking for higher returns can explore Fidelity's high-yield ETFs, which offer yields in the mid-six percent range, providing stronger cash flow despite increased risk [2][4] Fidelity Total Bond ETF - Classified in the intermediate core-plus category, the Fidelity Total Bond ETF prioritizes stability and holds about 80% of its assets in investment-grade bonds [3] - The fund's conservative approach results in a yield comfortably in the 4% range, appealing to income-oriented investors [4] High-Yield Alternatives - The Fidelity Enhanced High Yield ETF (FDHY) offers a yield of 6.59%, doubling that of the Fidelity Total Bond ETF, and is designed for investors willing to take on additional credit risk [5][6] - The Fidelity Sustainable High Yield ETF (FSYD) provides a yield of 6.53% with a focus on sustainability, appealing to investors who prioritize ESG considerations [7] Other Bond ETFs - The Fidelity Limited Term Bond ETF (FLTB) has a yield of 4.31% and is similar in strategy and risk to the Fidelity Total Bond ETF, but with shorter average maturities, making it resilient during rate volatility [9][10] - This ETF pays out an annual dividend of $2.18 and has shown strong dividend growth of around 9.37%, serving as a stabilizing option between conservative and high-yield investments [11]

Core Insights - Social Security is projected to face insolvency by 2034, leading to potential benefit cuts that could significantly impact retirees' lifestyles if their investment portfolios do not generate sufficient income [2][6]. Investment Opportunities - The Fidelity Enhanced High Yield ETF (FDHY) offers a yield of 6.61% through below investment grade bonds, with a low expense ratio of 0.35% [6]. - The FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) provides a yield of 7.98% by combining dividend stocks with covered call options [6]. - Both ETFs are suggested as potential additions to portfolios, especially for retirees who may need to rely more on investment income due to Social Security cuts [4][6]. Fund Management - The Fidelity Enhanced High Yield ETF is actively managed by a team at Fidelity, focusing on high yield, below investment grade bonds, with a minimum of 80% allocated to "junk" bonds [9]. - The fund uses the ICE® BofA® BB-B US High Yield Constrained Index as its benchmark and has an average duration of 1-5 years [9]. - Monthly dividend payments from FDHY are highlighted as a positive feature for retirees [9].