For much of the four-decade bond bull market that ended in 2022, a number of fixed-income portfolio managers rose to prominence on the back of consistent outperformance.
One of the most notable was Bill Gross, formerly of Pimco, who helped popularize the total return approach to bond investing. Rather than simply holding bonds to maturity and clipping coupons, Gross treated fixed income as a source of capital appreciation by actively managing duration, yield curve exposure, credit risk and sector allocation.
That style fell out of favor after the bond market regime shifted, and Gross ultimately parted ways with Pimco, but the renewed volatility in rates has brought active bond management back into focus.
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“With yields still elevated, volatility lingering and central banks exercising caution, we believe bonds will continue to drive portfolio returns,” says JoAnne Bianco, partner and senior investment strategist at BondBloxx, an asset manager specializing in fixed-income ETFs.
In 2026, attention turned to Rick Rieder, BlackRock’s chief investment officer for global fixed income. Rieder has been in the news not only for his investment track record, but also because he emerged as a leading candidate to succeed Jerome Powell when his term as Federal Reserve chair ends in May.
Prediction markets such as Polymarket had Rieder as the front-runner in late January, but President Donald Trump ultimately nominated former Fed governor Kevin Warsh to lead the central bank.
The possibility of Rieder running the Fed was notable for investors, given that he is the lead portfolio manager of the iShares Flexible Income Active ETF (ticker: BINC), a highly popular bond exchange-traded fund (ETF) with over $16 billion in assets under management (AUM).
Today, actively managed bond ETFs like BINC have become more liquid and cost competitive than in the past, narrowing the gap with traditional passive index bond ETFs.
“Rich stock prices and attractive current yields are creating demand for bond ETFs — particularly actively managed ETFs — which helps investors who are seeking portfolio diversification with the additional profit potential that comes from active tilts,” says Stephen McFee, senior portfolio manager at Vanguard.
Here are nine of the best bond ETFs investors can consider buying in 2026:
| ETF | Expense ratio | 30-day SEC yield |
| Vanguard Total Bond Market ETF (BND) | 0.03% | 4.2% |
| iShares U.S. Treasury Bond ETF (GOVT) | 0.05% | 3.9% |
| State Street SPDR Portfolio Mortgage Backed Bond ETF (SPMB) | 0.04% | 3.9% |
| Pimco Investment Grade Corporate Bond Index ETF (CORP) | 0.20% | 4.5% |
| Xtrackers USD High Yield Corporate Bond ETF (HYLB) | 0.05% | 6.5% |
| Invesco Senior Loan ETF (BKLN) | 0.65% | 5.9% |
| VanEck CLO ETF (CLOI) | 0.36% | 5.1% |
| BondBloxx JPMorgan USD Emerging Markets 1-10 Year Bond ETF (XEMD) | 0.29% | 5.2% |
| Capital Group Municipal Income ETF (CGMU) | 0.27% | 3.3% |
Vanguard Total Bond Market ETF (BND)
“Investors have seen bond ETFs successfully weather multiple storms in the markets, including the pandemic sell-off in March 2020,” says John Croke, head of investor choice business activation at Vanguard. “Time and again, bond ETFs have demonstrated their resilience and liquidity for investors.”
BND is currently the largest bond ETF, with over $146 billion in share-class AUM. For a very competitive 0.03% expense ratio, investors get exposure to over 11,400 investment-grade corporate bonds, Treasurys and mortgage-backed securities (MBS). BND currently pays a 4.2% 30-day SEC yield.
iShares U.S. Treasury Bond ETF (GOVT)
“Often overlooked in bond ETFs is liquidity — the ability to buy or sell the security quickly, easily and without a large spread,” says Daniel Dusina, chief investment officer at Blue Chip Partners. “A bond ETF’s liquidity, for the most part, is driven by the liquidity of its underlying securities.”
The most liquid securities are government-issued Treasurys. When packaged into a bond ETF like GOVT, investors can trade it like a stock, with a low 30-day median bid-ask spread of 0.04%. GOVT charges a 0.05% expense ratio and currently pays a 3.9% 30-day SEC yield with monthly distributions.
State Street SPDR Portfolio Mortgage Backed Bond ETF (SPMB)
“MBS ETFs offer yields that are comparable to investment-grade corporate bonds, accompanied with high credit quality and monthly cash flows,” says Dave P. Francis, investment advisor and principal at Bartlett Wealth Management. MBS ETFs can be a low-risk complement to Treasury-only bond ETFs.
SPMB tracks the Bloomberg U.S. MBS Index, which holds over 2,600 MBS issued by three government-sponsored enterprises: Ginnie Mae, Freddie Mac and Fannie Mae. It charges a competitively low 0.04% expense ratio, and currently pays a 3.9% 30-day SEC yield, similar to Treasury bond ETFs like GOVT.
Pimco Investment Grade Corporate Bond Index ETF (CORP)
U.S. Treasurys and agency-issued MBS carry high credit ratings, but that safety comes with lower yields. To earn more income, investors often need to take on credit risk by allocating to corporate bonds. CORP provides that exposure by tracking the BofA Merrill Lynch U.S. Corporate Index.
CORP’s portfolio offers a higher income profile, with a 4.5% 30-day SEC yield. The trade-off is lower tax efficiency, since corporate bond distributions are taxed as ordinary income in taxable accounts. The ETF charges a 0.2% adjusted expense ratio, which excludes costs from borrowing and short sales.
Xtrackers USD High Yield Corporate Bond ETF (HYLB)
Moving below the BBB credit rating brings investors into the high-yield, or junk bond, segment of the market. These bonds carry a greater risk of default, but investors are compensated with meaningfully higher yields. HYLB provides exposure to this segment with a 6.5% 30-day SEC yield.
“HYLB also has a shorter duration than most peers and offers superior liquidity, as bonds in the portfolio must have a minimum $400 million float,” says Ben Spalding, head of fixed-income portfolio management for Xtrackers Americas at DWS Group. The ETF charges a 0.05% expense ratio.
[READ: 7 of the Best High-Yield Bond Funds to Buy Now]
Invesco Senior Loan ETF (BKLN)
In a company’s capital structure, preferred shareholders rank ahead of common equity holders, and corporate bondholders rank ahead of preferred shares. Sitting near the top are senior loans, which are typically first-lien obligations with floating-rate coupons, priced at a spread above a benchmark rate.
Investors can access this segment through BKLN, which tracks the Morningstar LSTA U.S. Leveraged Loan 100 Index. While senior loans are not investment grade and carry meaningful credit risk, BKLN compensates investors with a 5.9% 30-day SEC yield after accounting for a 0.65% expense ratio.
VanEck CLO ETF (CLOI)
When senior loans are pooled together and tranched, the result is a collateralized loan obligation, or CLO. This includes safeguards such as overcollateralization and interest coverage tests designed to protect senior tranches. CLOs have historically shown resilience due to these built-in protections.
CLO exposure is now available through ETFs such as CLOI, which pays a 5.1% 30-day SEC yield. The portfolio is primarily invested in investment-grade CLO tranches, mostly in AAA and AA ratings and only modest allocations to A, BBB and BB tranches. CLOI charges a 0.36% expense ratio.
BondBloxx JPMorgan USD Emerging Markets 1-10 Year Bond ETF (XEMD)
U.S. government debt remains among the highest quality globally. That is not the case for many emerging-market sovereign issuers, including countries such as Turkey, Mexico and Argentina. Bonds issued by these governments carry higher default risk due to economic and political instability.
To compensate investors for that risk, emerging-market bond ETFs typically offer higher yields. XEMD provides exposure to U.S. dollar-denominated emerging-market sovereign bonds in the intermediate maturity band. The ETF currently pays a 5.2% 30-day SEC yield and charges a 0.29% expense ratio.
Capital Group Municipal Income ETF (CGMU)
Corporate bond income is generally taxed as ordinary income at both the federal and state level, which can significantly reduce total returns for higher-income investors. For investors prioritizing tax efficiency, municipal bonds can be an attractive alternative, especially inside a taxable brokerage account.
CGMU invests in municipal bonds whose interest income is exempt from federal income taxes. Unlike many municipal bond ETFs, the fund is permitted to hold some non-investment-grade issues, which helps lift its yield profile. After a 0.27% expense ratio, CGMU currently pays a 3.3% 30-day SEC yield.
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9 of the Best Bond ETFs to Buy for 2026 originally appeared on usnews.com
Update 01/30/26: This story was published at an earlier date and has been updated with new information.
