In this piece, we will take a look at the 12 best bond ETFs to buy. If you want to take a deeper look at the bond markets, then check out 12 Best Bond ETFs to Buy.
5. Vanguard Short-Term Corporate Bond Index Fund (NASDAQ:VCSH)
Annualized Return Over 5 Years: 1.68%
Vanguard Short-Term Corporate Bond Index Fund (NASDAQ:VCSH) is another ETF that invests in short term bonds. The fund was set up in 2009 and it has net assets of $43.3 billion. Its average yield to maturity is 5.64% and the average maturity of the 2498 holdings in its portfolio is 2.9 years. The ETF has invested in the bonds of some of the biggest companies in the world such as The Boeing Company (NYSE:BA) and Bank of America Corporation (NYSE:BAC).
4. WisdomTree Floating Rate Treasury Fund (NYSE:USFR)
Annualized Return Over 5 Years: 1.75%
WisdomTree Floating Rate Treasury Fund (NYSE:USFR) is part of the Wisdom Tree fund family and is a relatively smaller fund on our list in terms of net assets which stand at $17.99 billion. The fund was set up in 2024 and it tracks the Bloomberg U.S. Treasury Floating Rate Bond Index. The average yield to maturity of the portfolio is 5.54% and the holdings are spread across one year and two year U.S. Government Treasury Bonds.
3. iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB)
Annualized Return Over 5 Years: 1.80%
iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) is part of the iShares fund family and it invests in corporate debt. The ETF tracks the ICE BofA 1-5 Year US Corporate Index, it was set up in 2007, and has net assets that are worth $22.4 billion. Like several other ETFs on our list, the iShares 1-5 Year Investment Grade Corporate Bond ETF (NASDAQ:IGSB) has also invested in thousands of securities. More than 35% of the issues of the debt in its portfolio belong to the financial and banking sector, making it unsurprising that it is a top performing bond ETF given the current high rate environment.
2. JPMorgan Ultra-Short Income ETF (NYSE:JPST)
Annualized Return Over 5 Years: 2.08%
JPMorgan Ultra-Short Income ETF (NYSE:JPST) is part of the JPMorgan funds family and it was set up in 2017. The fund has $22.67 billion in net assets and it was set up in 2017. The ETF’s average net yield to maturity is 5.70% and it has 626 holdings. Out of these, only one is a short holding, and overall, 39% of the investments are in corporate bonds. Since it is an ultra short income fund, the average life of the portfolio is less than one year.
1. iShares TIPS Bond ETF (NYSE:TIP)
Annualized Return Over 5 Years: 2.26%
iShares TIPS Bond ETF (NYSE:TIP) tracks the ICE US Treasury Inflation Linked Bond Index. It has $21 billion in net assets and was set up in 2003 – making it one of the oldest funds on our list. All of its holdings are in securities issued by the Treasury Department, with maturities ranging from one to 20 years.
Disclosure: None. You can also take a look at 10 Best Lithium ETFs and S&P 500 Dividend Aristocrats List: Sorted By Analyst Ratings.
