14 Best U.S. Bond Index Funds to Invest in Now: Morningstar

The mutual funds and exchange-traded funds on Morningstar’s list of the best bond index funds to buy in 2023 all land in a broad bond category, Susan Dziubinski, an investment analyst at the firm, wrote in her latest blog post.

All the funds earned a Morningstar Gold rating, which means that analysts consider them most likely to outperform over a full market cycle. And each one has an Analyst Assigned % score equal to at least 80% as of June 7.

Dziubinski noted that several index funds on this list land in one of the intermediate-term bond categories. “As such, they’d make great choices to anchor the bond portion of an investor’s portfolio, assuming the goals for the money are six or more years away.”

She said investors who are saving for a shorter-term goal in the next three to five years might consider short-term bond funds instead. For those with longer time horizons, a longer-term bond fund makes sense — “but they should also be prepared for the enhanced volatility that comes with investing in long-term bonds.”

See the gallery for Morningstar’s list of the 14 best bond index mutual funds and ETFs.

Slides: Credit: Chris Nicholls/ALM