With interest rates remaining low and concerns over inflation, many investors are turning to bonds as a way to diversify their portfolios. Here are five of the best bonds to buy now:
- Vanguard Total International Bond ETF (BNDX) This bond is a great option for those looking to diversify their portfolios internationally. The Vanguard Total International Bond ETF invests in a wide range of government, agency, and corporate bonds from developed and emerging markets outside the U.S.
- iShares Inflation Hedged Corporate Bond ETF (LQDI): This bond is a good choice for investors who are worried about inflation. The iShares Inflation Hedged Corporate Bond ETF invests in corporate bonds that are indexed to inflation, which can help protect investors against rising inflation.
- Pimco Active Bond ETF (BOND) This bond is a good option for those who want an actively managed bond fund. The Pimco Active Bond ETF invests in a range of bonds, including treasuries, corporate bonds, and mortgage-backed securities. This fund has consistently outperformed its benchmark and has a low expense ratio.
- SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) This bond is a great choice for investors who want a low-risk, short-term investment. The SPDR Bloomberg 1-3 Month T-Bill ETF invests in Treasury bills with maturities of one to three months, which are considered some of the safest investments available.
- Vanguard Tax-Exempt Bond ETF (VTEB) This bond is a good choice for investors who want to reduce their tax burden. The Vanguard Tax-Exempt Bond ETF invests in a range of tax-exempt bonds issued by state and local governments, which can provide tax-free income for investors.
When it comes to investing in bonds, it’s important to consider your investment goals, risk tolerance, and tax situation. These five bonds can be a good starting point for investors looking to diversify their portfolios and potentially reduce their risk.