{"id":261,"date":"2022-05-01T16:00:05","date_gmt":"2022-05-01T16:00:05","guid":{"rendered":"https:\/\/dorseyentertains.com\/?p=261"},"modified":"2025-01-03T10:28:29","modified_gmt":"2025-01-03T10:28:29","slug":"a-closer-look-at-the-best-performing-bond-funds-of-2022","status":"publish","type":"post","link":"https:\/\/dorseyentertains.com\/index.php\/2022\/05\/01\/a-closer-look-at-the-best-performing-bond-funds-of-2022\/","title":{"rendered":"A Closer Look at the Best Performing Bond Funds of 2022"},"content":{"rendered":"

After settling to historic lows, bond yields are coming back up. Rising interest rates are also an opportunity for retirees and passive income investors to begin exploring the best performing bond funds as a way to preserve their wealth. But, like any type of ETF or mutual fund, bond funds<\/a> require a little bit of investigation before you make an investment. Namely, you want to make sure the fund is structured to meet your expectations.<\/p>\n

Bond funds offer plenty of stability and the appeal of stable income, but not all bond funds are the same. They vary greatly depending on the type of bonds the fund holds, its objectives and strategies for fund maintenance, and even the changing nature of the bond market. To that end, it\u2019s not always easy to pinpoint the best performing bond funds through objective analysis.<\/p>\n

Here\u2019s a closer look at bond funds in 2022, including the most reliable funds based on trailing returns and how they\u2019re expected to perform in the current rising rate environment.<\/p>\n

\"Find<\/p>\n

Why Invest in Bond Funds?<\/h2>\n

The purpose of a bond fund is primarily to generate a steady stream of income through the interest payments generated by bonds. Bond funds offer a simple alternative to building your own bond portfolio. For example, instead of building a bond ladder that ensures accumulated monthly payments, an investor can invest in a bond fund that\u2019ll deliver this same level of payout.<\/p>\n

The other instance in which a bond fund is useful is as a portfolio hedge. Investors seeking to bring stability to an equity-focused portfolio might invest in a bond ETF<\/a>. It\u2019s a way to hedge against volatility, as well as create passive investment income that someone can reinvest in equities.<\/p>\n

Bond ETFs vs. Bond Mutual Funds<\/h2>\n

Like equity funds, bond funds come in both ETF and mutual fund<\/a> varieties. For most investors, the decision comes down to fund performance vs. expense ratio. Bond funds typically have a lower expense ratio than equity funds, but there\u2019s still a level of active management that\u2019s needed to ensure they perform as-expected.<\/p>\n

The type of bonds you\u2019re interested in can also have an effect on the type of fund you choose. Those interested in U.S. Treasuries, large corporate bonds and even municipal bonds will find both ETFs and mutual funds accessible. Those looking for riskier investments like foreign bonds or bonds from subprime issuers will want to trend toward ETFs, since most mutual funds will stick to safer investments.<\/p>\n

The Best Performing Bond ETFs<\/h2>\n

The appeal of many bond ETFs is that it\u2019s easy to enter and exit positions<\/a>, giving bond investors flexibility to pursue the best yield. That, and there aren\u2019t typically minimum investments for ETFs. Here\u2019s a look at the best performing bond funds in this category:<\/p>\n