Product Category Search
Top rated bonds investing
-
Best overall bond ETF
Vanguard Total Bond Market Index Fund (BND)
Low-cost, diversified exposure to U.S. investment-grade bonds. Ideal for core bond allocation.
- Ultra-low expense ratio of 0.03%
- Broad diversification across Treasuries, corporates, MBS
- High liquidity
- Slight interest rate sensitivity
- No inflation protection
-
Best core bond ETF alternative
iShares Core U.S. Aggregate Bond ETF (AGG)
Similar to BND but with slightly different index. Strong performance and low cost.
- Low expense ratio of 0.03%
- High credit quality
- Large asset base
- Less exposure to corporate bonds
- Similar interest rate risk
-
Best for low volatility
Vanguard Short-Term Bond Index Fund (BSV)
Short-term bonds reduce interest rate risk. Suitable for conservative investors.
- Low duration (2.7 years)
- High credit quality
- Stable returns
- Lower yield than longer-term bonds
- Limited upside in rising rates
-
Best for corporate bonds
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
Focused on investment-grade corporate bonds. Higher yield than Treasuries with moderate risk.
- Yield premium over Treasuries
- Liquid and actively traded
- Diversified across sectors
- Higher expense ratio (0.14%)
- Credit risk and default risk
-
Best for tax-sensitive investors
Vanguard Tax-Exempt Bond Index Fund (VTEB)
Municipal bonds free from federal income tax. Good for high tax bracket investors.
- Tax-free income for high brackets
- Low expense ratio (0.05%)
- High credit quality
- Lower yield than taxable bonds
- State tax may apply
-
Best mutual fund for core bonds
Schwab U.S. Aggregate Bond Index Fund (SWAGX)
Low-cost mutual fund tracking the U.S. aggregate bond index. Good for buy-and-hold investors.
- Low expense ratio (0.04%)
- No transaction fees at Schwab
- Broad diversification
- Minimum initial investment $100
- Less tax efficient than ETFs
-
Best for Fidelity account holders
Fidelity U.S. Bond Index Fund (FXNAX)
Index fund with zero minimum investment and low costs. Ideal for retirement accounts.
- Zero minimum investment
- Very low expense ratio (0.025%)
- Solid long-term track record
- Only available at Fidelity
- No ETF version
-
Best inflation protection
iShares TIPS Bond ETF (TIP)
TIPS hedge against inflation, with principal adjusted for CPI. Essential for preserving purchasing power.
- Inflation protection
- Backed by U.S. government
- Low correlation with stocks
- Lower real yields
- Deflation risk in severe cases
-
Best active bond fund
PIMCO Income Fund (PONAX)
Actively managed by PIMCO's top team, focusing on global bond opportunities. Good for higher income.
- Skilled management and track record
- Flexible strategy across sectors
- High current yield
- Higher expense ratio (0.90%)
- Active risk and manager dependence
-
Best for safe haven
Vanguard Intermediate-Term Treasury Index Fund (VGIT)
Focus on intermediate U.S. Treasuries. Offers safety and moderate yield with minimal credit risk.
- No credit risk
- Low expense ratio (0.04%)
- Good liquidity
- Interest rate sensitivity
- Lower yield than corporate bonds