“Top 5 Core Bond Funds for Long-Term Investors”
December 28, 2020
“1. Fidelity Total Bond Fund (FTBFX)
The Fidelity Total Bond Fund seeks to provide investors with high levels of current income. The fund uses the Bloomberg Barclays U.S. Universal Bond Index in guiding its allocation decisions and as a benchmark index. The fund invests around 75% of its assets in a wide range of debt securities. It then invests about 15% of its assets in debt securities with lower credit ratings.1 These lower-quality debt securities have higher risks than investment-grade bonds, but they also offer higher yields. The fund also engages in derivatives trading, which allows increased leverage but also contains specific types of risk. The derivatives include trading swaps, options, and futures contracts…
2. Vanguard Total Bond Market ETF (BND)
The Vanguard Total Bond Market ETF provides broad exposure to U.S. investment-grade bonds. As of October 2020, the fund invested around 59% of its assets in U.S. government bonds across all maturities. The remaining 41% was held in other investment-grade bonds. It had a very low expense ratio of 0.035%, which is over 90% below the average expense ratio of funds with similar holdings. Vanguard funds are known for having some of the lowest expense ratios in the industry…”
For the rest of the top five click the link.