Top Bond ETFs

This mix of bond ETFs may be particularly compelling and worth considering for a customized portfolio mix. The management companies (Vanguard and BlackRock (iShares)) are highly respected, the net yields (the amount you get paid as an investor) are particularly compelling (without “reaching” or “stretching” for yield—which can add unecessary risk).

Also, depending on your situation—this can be a good customizable “barbell” approach (including stability (SGOV), foundational credit (VCRB), tax efficiency (VTEB), higher income (VGHY), and diversified credit beta (VGMS).

• SGOV holds short-term Treasuries for stability and liquidity.

• VCRB provides core U.S. investment-grade bond exposure.

• VTEB offers tax-exempt municipal income (after-tax efficiency) for taxable accounts owned by investors in high tax brackets.

• VGHY targets higher-yield corporate credit for income.

• VGMS diversifies across multiple credit sectors to enhance yield.

Be sure to consider how these bond ETFs may fit into your overall asset allocation strategy.