FBNDX vs. FXNAX: Investment Grade Bond vs US Bond Fund

Someone asks:

Can someone explain the difference between FBNDX and FXNAX (Fidelity Investment Grade Bond fund vs US Bond Index Fund)?

And which is a match to VBTLX (Vanguard Total Bond Fund)?

FBNDX vs FXNAX: Fund Comparison

FundsFidelity Investment Grade Bond FundFidelity U.S. Bond Index Fund
Price7.94 (NAV)11.38 (NAV)
3-year total return+4.48%+3.28%
3-year standard deviation4.10%3.80%
Morningstar rating
Min. initial investment0.00 USD0.00 USD
Net expense ratio0.45%0.03%
Total net assets6.15bn USD57.68bn USD
Morningstar categoryIntermediate Core BondIntermediate Core Bond

Which is Better, FBNDX or FXNAX?


Community Answers:

Craig D:

FBNDX has riskier corporate bonds. You can see this by looking at the funds’ exposure and breakdown of its invested bonds. The maturity duration of both funds are very similar.

The “Exposure” and “Bond Breakdown” will show you the breakdown. If you click on the Prospectus of this fund at Fidelity, look to the far right for the Portfolio Characteristics.

Most of these bond funds will hold portions of corporate and treasury bonds and municipal, securitized, and cash.

Jason F:

One is actively managed and the other is passive index. FXNAX matches VBTLX.

Jack L:

I’ve read several articles like this. It makes me wonder if I should adjust my portfolio for the remainder of the year – moving most of my investments from a Fidelity blue chip ETF into FBNDX. Thoughts?

Rich O:

What you’re suggesting is moving to FBNDX or something similar. That would really depend on where you currently are and your overall strategy, no? If you’re still looking for as much growth as possible, sticking with and investing in the ETF wouldn’t be a bad move, would it? I’d imagine after things rebound, you’d receive your payoff. But that’s, of course, if you’re not currently living off your investment.

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