FSHBX

About FSHBX

Fidelity Short-Term Bond Fund is an actively managed mutual fund focused on high-quality, investment‑grade fixed income with a short interest‑rate profile. Its primary objective is to provide current income and capital preservation by investing across U.S. Treasuries, agency securities, investment‑grade corporates, and securitized debt while maintaining a limited interest‑rate sensitivity, reflected in an effective duration of about two years. According to Morningstar and Fidelity data, the fund sits in the Short‑Term Bond category, features a low expense profile, and emphasizes diversified sector allocation with a notable allocation to U.S. Treasury notes among its largest holdings. The strategy seeks to manage volatility and reinvestment risk by keeping the dollar‑weighted average maturity near the front end of the curve, typically three years or less, and by actively rotating across sectors and maturities. The fund’s role in the market is to serve investors seeking a core short‑duration bond holding for liquidity management, income generation, and dampening portfolio interest‑rate risk relative to intermediate‑ or long‑duration bond funds.