In this article, we discuss 5 best bond ETFs to buy. If you want to read our discussion on the bond market, head directly to 12 Best Bond ETFs To Buy.
5. Vanguard Tax-Exempt Bond Index Fund ETF Shares (NYSE:VTEB)
5-Year Share Price Returns as of March 16: 9.37%
Vanguard Tax-Exempt Bond Index Fund ETF Shares (NYSE:VTEB) tracks the performance of S&P National AMT-Free Municipal Bond Index, which is an index representing the US municipal bond market’s investment-grade segment. It employs an indexing approach, with at least 80% of assets invested in index securities offering federal tax-exempt income. The fund was established on August 21, 2015. As of February 29, 2024, the ETF’s portfolio consists of 10429 bonds and net assets amount to $34.4 billion, along with an expense ratio of 0.05%. Vanguard Tax-Exempt Bond Index Fund ETF Shares (NYSE:VTEB) is one of the best bond ETFs to buy.
4. SPDR Portfolio Corporate Bond ETF (NYSE:SPBO)
5-Year Share Price Returns as of March 16: 9.70%
SPDR Portfolio Corporate Bond ETF (NYSE:SPBO) aims to mirror the Bloomberg US Corporate Bond Index, providing low-cost exposure to US bonds that constitute the corporate portion of the Bloomberg Aggregate Bond Index. The index includes securities with at least $300 million outstanding and at least one year until maturity. As of March 14, 2024, SPDR Portfolio Corporate Bond ETF (NYSE:SPBO) holds $1,311.70 million in assets under management, with an expense ratio of 0.03% and a portfolio of 4,819 bonds. It is one of the best bond ETFs to buy.
3. FlexShares Credit-Scored US Long Corporate Bond Index Fund (CBOE:LKOR)
5-Year Share Price Returns as of March 16: 9.77%
Ranking 3rd on our list of the best bond ETFs is FlexShares Credit-Scored US Long Corporate Bond Index Fund (CBOE:LKOR). This ETF is suited for investors interested in investment-grade US corporate bonds with long-term maturities, emphasizing issuer quality and value. FlexShares Credit-Scored US Long Corporate Bond Index Fund (CBOE:LKOR) aims to mirror the Northern Trust US Long Corporate Bond Quality Value Index’s performance. As of March 15, 2024, the fund holds net assets totaling $32.31 million, featuring an expense ratio of 0.15% and a portfolio comprising 828 bonds.
2. iShares 0-5 Year TIPS Bond ETF (NYSE:STIP)
5-Year Share Price Returns as of March 16: 17.88%
iShares 0-5 Year TIPS Bond ETF (NYSE:STIP) aims to replicate the performance of the ICE US Treasury 0-5 Year Inflation Linked Bond Index, which consists of inflation-protected US Treasury bonds with maturities under five years. This ETF provides exposure to short-term US TIPS, which adjust their face value in line with inflation. As of March 15, 2024 the ETF holds net assets totaling $7.86 billion, with an expense ratio of 0.03% and a portfolio containing 26 bonds. iShares 0-5 Year TIPS Bond ETF (NYSE:STIP) is one of the best bond ETFs to buy.
1. SPDR Portfolio High Yield Bond ETF (NYSE:SPHY)
5-Year Share Price Returns as of March 16: 23.82%
SPDR Portfolio High Yield Bond ETF (NYSE:SPHY) ranks 1st on our list of the best bond ETFs. SPDR Portfolio High Yield Bond ETF (NYSE:SPHY) aims to mirror the performance of the ICE BofA US High Yield Index, offering low-cost exposure to USD-denominated high yield debt exceeding a trillion dollars. The index consists of publicly issued USD high yield bonds with below investment grade ratings, at least 18 months to final maturity, fixed coupon, and minimum outstanding amount of $250 million. SPDR Portfolio High Yield Bond ETF (NYSE:SPHY) boasts an expense ratio of 0.05% and holds a portfolio of 1,922 bonds as of March 17, 2024, with assets under management totaling $3,936.06 million.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out Billionaire Paul Tudor Jones and Insiders Love These 10 Stocks and 15 Key Questions To Ask Your Financial Advisor.
