Bond ETFs provide income, portfolio diversification, and stability during equity market downturns. With many options spanning Treasuries, corporate bonds, and municipals, choosing the right fund matters.
Our quantitative model evaluates bond ETFs on cost efficiency, performance, momentum, liquidity, and tracking quality to surface the strongest options.
Top 10 Best Bond ETFs
| # | Ticker | Score | Rating | Composite Score |
|---|---|---|---|---|
| 1 | IEF | 80.0 | 80.0 | |
| 2 | SCHZ | 65.0 | 65.0 | |
| 3 | AGG | 58.0 | 58.0 | |
| 4 | TLT | 58.0 | 58.0 | |
| 5 | SHY | 58.0 | 58.0 | |
| 6 | LQD | 58.0 | 58.0 | |
| 7 | HYG | 58.0 | 58.0 | |
| 8 | MBB | 58.0 | 58.0 | |
| 9 | TIP | 50.0 | 50.0 | |
| 10 | BNDX | 50.0 | 50.0 |
Rankings based on our 5-factor quantitative model. Data refreshed daily. Past performance does not guarantee future results.
Top 3: A Closer Look
These bond ETFs offer the strongest combination of low costs, solid returns, and excellent tracking.
1. IEF — IEF
IEF earns a composite score of 80.0 with an expense ratio of — and AUM of —. The fund currently holds a Strong Buy rating. View full IEF analysis.
2. SCHZ — SCHZ
SCHZ earns a composite score of 65.0 with an expense ratio of — and AUM of —. The fund currently holds a Buy rating. View full SCHZ analysis.
3. AGG — AGG
AGG earns a composite score of 58.0 with an expense ratio of — and AUM of —. The fund currently holds a Hold rating. View full AGG analysis.
Methodology
Bond ETFs are scored against their fixed income peers using the same 5-factor framework. Cost efficiency is especially important for bond funds, where expense ratios directly erode typically lower yields.
The performance factor for bond ETFs captures total return including coupon payments, while tracking quality measures how closely the fund follows its benchmark index.
View all ETF rankings for the full 5-factor model applied across 600+ ETFs.
How to Use This List
Bond ETFs serve as the stabilizing anchor in most portfolios. Consider your risk tolerance and income needs when choosing between short-term, intermediate, and long-term bond funds.
Diversifying across government and corporate bonds, as well as different maturities, can optimize your fixed income allocation.
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Frequently Asked Questions
Are bond ETFs safe?
Bond ETFs are generally less volatile than stock ETFs, but they are not risk-free. Interest rate changes, credit risk, and inflation can all affect bond prices. Treasury bond ETFs carry the lowest credit risk.
How do bond ETFs pay interest?
Most bond ETFs collect coupon payments from their underlying bonds and distribute them to shareholders as monthly dividends. Some investors reinvest these payments for compound growth.
Important Disclaimer
This content is for informational purposes only and does not constitute investment advice. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions. Blank Capital Research is not a registered investment advisor.