Bond ETFs are the specific exchange-traded funds that invest only in fixed-income securities like bonds and treasuries. They differ from bonds in the way that they are traded over exchanges as opposed to the bonds that are sold over the counter.
Bond ETFs work as effective means for investors to gain access to the bond market, in addition to the liquidity and ease of stock trading. They provide regular coupon payments in the form of monthly dividends, while the capital income is offered as annual dividends.
Thus, bond ETFs have the features and stability of investing in bonds, coupled with the attractive prospects of transparency and ease of trading.
Ticker | Company Name | Last Price | 1-Year Return |
|---|---|---|---|
| AGG | iShares Core U.S. Aggregate Bond ETF | $114.77 | -2.02% |
| BND | Vanguard Total Bond Market ETF | $85.44 | -2.31% |
| LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | $131.56 | 1.64% |
| VCIT | Vanguard Intermediate-Term Corporate Bond ETF | $93.94 | 3.49% |
| VCSH | Vanguard Short-Term Corporate Bond ETF | $82.66 | 2.34% |
| SHV | iShares Short Treasury Bond ETF | $110.51 | -0.37% |
| BSV | Vanguard Short-Term Bond ETF | $82.32 | -0.28% |
| TIP | iShares TIPS Bond ETF | $126.61 | 4.15% |
| MBB | iShares MBS ETF | $108.81 | -1.36% |
| SHY | iShares 1-3 Year Treasury Bond ETF | $86.28 | -0.42% |
| HYG | iShares iBoxx USD High Yield Corporate Bond ETF | $87.14 | 10.16% |
| TLT | iShares 20+ Year Treasury Bond ETF | $140.39 | -17.19% |
| IEF | iShares 7-10 Year Treasury Bond ETF | $114.66 | -6.04% |
| PFF | iShares Preferred and Income Securities ETF | $38.76 | 15.81% |
| MUB | iShares National Muni Bond ETF | $117.08 | 4.15% |
| GOVT | iShares U.S. Treasury Bond ETF | $5.02 | -5.46% |
| IGSB | iShares Short-Term Corporate Bond ETF | $54.76 | 2.45% |
| BIV | Vanguard Intermediate-Term Bond ETF | $89.34 | -1.91% |
| MINT | PIMCO Enhanced Short Maturity Active ETF | $101.97 | 1.64% |
| JNK | SPDR Bloomberg Barclays High Yield Bond ETF | $108.84 | 11.70% |
| VMBS | Vanguard Mortgage-Backed Securities ETF | $53.68 | -0.89% |
| FLOT | iShares Floating Rate Bond ETF | $5.01 | 1.21% |
| BIL | SPDR Bloomberg Barclays 1-3 Month T-Bill ETF | $91.50 | -0.05% |
| SCHP | Schwab U.S. TIPS ETF | $61.72 | 4.56% |
| IGIB | iShares Intermediate-Term Corporate Bond ETF | $59.77 | 4.15% |
| IEI | iShares 3-7 Year Treasury Bond ETF | $130.65 | -2.01% |
| SCHZ | Schwab U.S. Aggregate Bond ETF | $54.38 | -2.21% |
| VTIP | Vanguard Short-Term Inflation-Protected Securities ETF | $51.75 | 4.86% |
| NEAR | iShares Short Maturity Bond ETF | $50.17 | 2.10% |
| SPSB | SPDR Portfolio Short Term Corporate Bond ETF | $31.31 | 1.52% |
| SCHO | Schwab Short-Term U.S. Treasury ETF | $51.30 | -0.75% |
| VTEB | Vanguard Tax-Exempt Bond ETF | $55.18 | 4.19% |
| PGX | Invesco Preferred ETF | $15.08 | 9.75% |
| VGSH | Vanguard Short-Term Treasury Index ETF | $61.54 | -1.14% |
| BKLN | Invesco Senior Loan ETF | $22.11 | 5.89% |
| SPAB | SPDR Portfolio Aggregate Bond ETF | $29.89 | -2.16% |
| SPIB | SPDR Portfolio Intermediate Term Corporate Bond ETF | $36.46 | 3.58% |
| FTSM | First Trust Enhanced Short Maturity ETF | $59.98 | 0.72% |
| SCHR | Schwab Intermediate-Term U.S. Treasury ETF | $56.83 | -3.27% |
| VGIT | Vanguard Intermediate-Term Treasury Index ETF | $67.76 | -3.90% |
| CWB | SPDR Bloomberg Barclays Convertible Securities ETF | $85.00 | 64.19% |
| IUSB | iShares Core Total USD Bond Market ETF | $53.17 | -0.52% |
| VCLT | Vanguard Long-Term Corporate Bond ETF | $103.24 | 0.57% |
| BLV | Vanguard Long-Term Bond ETF | $100.08 | -9.51% |
| FLRN | SPDR Bloomberg Barclays Investment Grade Floating Rate ETF | $30.63 | 2.10% |
| SHM | SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | $49.69 | 1.35% |
| USIG | iShares Broad USD Investment Grade Corporate Bond ETF | $59.66 | 2.63% |
| LMBS | First Trust Low Duration Opportunities ETF | $51.12 | -0.49% |
| HYLB | Xtrackers USD High Yield Corporate Bond ETF | $39.99 | 10.68% |
| GBIL | Goldman Sachs Access Treasury 0-1 Year ETF | $100.13 | -0.53% |
| SJNK | SPDR Bloomberg Barclays Short Term High Yield Bond ETF | $27.35 | 13.30% |
| SHYG | iShares 0-5 Year High Yield Corporate Bond ETF | $45.80 | 9.83% |
| HYD | VanEck Vectors High-Yield Municipal Index ETF | $0.20 | 185.71% |
| TFI | SPDR Nuveen Bloomberg Barclays Municipal Bond ETF | $52.15 | 3.64% |
Factors to Consider Before Investing in Bond ETFs
Investors willing to invest in bond ETFs must remain aware of the few limitations compared to investing in bonds. The most significant feature to be considered is that bond ETFs do not mature. Therefore, it is not guaranteed that investors will receive their principal back in full, which is a sure-shot case with bonds.
Additionally, bond ETFs are equally affected by interest rates fluctuations as the bonds. When the interest rates increase, the price of bond ETFs gets negatively impacted. Also, due to the absence of fixed maturity, it becomes difficult to manage the interest rate risk with bond ETFs.
Which Bond ETFs Should I Buy?
To make the investment process simpler for you, we have organized a list of the bond ETFs. You can make a choice based on the sector, time horizon, and maturity target, among other criteria.
Investors get to choose among a wide variety of bond ETFs that can be short-term, intermediate-term, or long-term, government, municipal, or corporate, hedged, floating or fixed rate, emerging market, and high-yield.
The risk profile of each category must be considered before investing in specific bond ETFs, along with keeping in mind that bond ETFs are similar to bonds, yet vary to a large degree.
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