: "Investment-grade" corporate debt is favored over high-yield (junk) bonds right now. While yields are attractive, credit spreads—the extra yield over Treasuries—are at multi-decade tights, meaning riskier bonds offer less "cushion" if the economy softens.
AI responses may include mistakes. For financial advice, consult a professional. Learn more 8 Best Bonds to Invest in for the Long term (2026) what bond funds to buy now
Top Pick : remains a benchmark for broad exposure at a low 0.03% expense ratio. For financial advice, consult a professional
Best for high-tax-bracket investors in non-retirement accounts. Lower interest rate risk with a ~4.1% yield. International Diversification into non-U.S. developed markets. The "Active" Advantage in 2026 Lower interest rate risk with a ~4
With spreads tight and market dispersion increasing, many analysts at Morningstar recommend actively managed ETFs. These funds allow managers to hand-pick specific sectors or issuers rather than blindly tracking a broad index, which may be critical if certain industries struggle with geopolitical shifts or high debt costs.
Active Top Picks : or Fidelity Total Bond ETF (FBND) .