FX.co ★ 5 best bond ETFs to invest in

iShares Core U.S. Aggregate Bond ETF

The iShares Core U.S. Aggregate Bond ETF is considered the largest fund in this category. The value of managed assets reaches an impressive $89 billion, with over 10,000 total positions. It includes US Treasury bonds and corporate bonds of such leading companies as JPMorgan Chase & Co. The iShares Core U.S. Aggregate Bond ETF is an affordable one-stop place for bond exposure: annual expenses do not exceed 0.04%, while dividends remain high.

Vanguard Intermediate-Term Corporate Bond ETF

The second largest bond ETF is Vanguard Intermediate-Term Corporate Bond. It offers a higher yield than an aggregate bond fund and focuses mainly on top-tier corporate bonds of well-established companies that are perfect for long-term investment. These are bonds of such reputable blue-chip companies as Bank of America Corp., Allstate Corp., and UnitedHealth Group Inc. This $46 billion fund is one of the largest ETFs on Wall Street and looks like the best option for investment.

Vanguard Short-Term Corporate Bond ETF

Vanguard Short-Term Corporate Bond ranks third on our list. It specializes in investing in high-risk securities. The yield offered by Vanguard Short-Term Corporate Bond is less than that of the typical S&P 500 dividend stock. However, stability and decent profits make up for this disadvantage. The fund has $41 billion in assets.

iShares 20+ Year Treasury Bond ETF

iShares 20+ Year Treasury Bond ETF is suitable for those who prefer a low-risk investment approach. Therefore, this fund cannot boast a high return. Yet, one of its advantages is associated with US government bond holdings, the most solid type of investment. iShares 20+ Year Treasury Bond ETF is an excellent financial instrument for investing in long-term US Treasuries that have maturities greater than 20 years.

Vanguard Total International Bond ETF

Vanguard Total International Bond closes the list of top 5 bond ETFs. This is another low-risk fund with a focus on international bonds. It includes debt securities of various categories: from foreign governments to Japanese transportation firms. A wide array of issuers makes this fund perfect for a long-term investment strategy. On the flip side, bond investors do not get much of a premium and the yield is among the lowest on the list.