FXD is an acronym for fixed income exchange traded fund. There are several synonyms for this term, including bond ETFs, fixed income ETFs and income ETFs. These types of ETFs invest in a range of fixed-income securities, such as government bonds, corporate bonds, municipal bonds and mortgage-backed securities. They are designed to provide investors with exposure to a diversified portfolio of fixed-income securities, while offering the convenience of trading like stocks on major exchanges. These ETFs can help investors balance their portfolios and achieve income goals. By diversifying across multiple fixed-income securities, investors can reduce the risk of individual securities negatively impacting their returns.