5 Best Bond ETFs to buy for Q1 2024

We have identified the best bond ETFs to buy this year.
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Updated: Oct 25, 2023
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The go-to investment instruments in times of great uncertainty are bonds. They don’t make exciting price rallies and aren’t as volatile as stocks, but they provide safe and steady income. To reduce the investment risk further, instead of investing in individual bonds, investors go for bond ETFs (exchange-traded funds).

What are the top bonds ETFs to buy?

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These are the best bond ETFs to buy in 2024. They will help you reduce the portfolio risk profile while providing steady returns.

#ETF symbolETF nameWhere to Trade
1TMFDirexion Daily 20+ Year Treasury Bull ETF
Buy TMF

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

2AGGiShares Core US Aggregate Bond ETF
Buy AGG

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

3LKORFlexshare Credit-Scored US Long Corporate Bond Index Fund
Buy LKOR

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

4BNDVanguard Total Bond Market ETF
Buy BND

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

5SPLBThe SPDR Portfolio Long Term Corporate Bond ETF
Buy SPLB

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

6LQDiShares iBoxx $ Investment Grade Corporate Bond ETF
Buy LQD

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

7VCSHVanguard Short-Term Corporate Bond ETF
Buy VCSH

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

8FLTRThe VanEck Vectors Investment Grade Floating Rate ETF
Buy FLTR

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

9BNDXVanguard Total International Bond ETF
Buy BNDX

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

10IEFiShares 7-10 Year Treasury Bond ETF
Buy IEF

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

List chosen by our team of analysts, updated March 2024.

1. Direxion Daily 20+ Year Treasury Bull ETF [TMF]

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This bond ETF tracks the performance of the ICE U.S. Treasury 20+ Year Bond Index. It is a non-diversified fund made up of US treasury bonds with a maturity period of more than 20 years. It boasts $226 million in assets under management and an expense ratio of 1.05%. It is a bond market ETF for a patient long-term investor.

Sign-up & trade TMF ETF

76% of retail CFD accounts lose money. Your capital is at risk.

2. iShares Core US Aggregate Bond ETF [AGG]

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The AGG fund gives investors access to the broad United States bond market and has holdings across the entire US economic landscape: federal bonds, municipal bonds, and investment-grade corporate bonds of large, medium, and small companies. It tracks the performance of the US investment-grade bond market and is ranked 5th in intermediate core bonds. At the time of writing, it boasts $86 billion in assets under management (AUM) and has an expense ratio of 0.04%. It is very popular and one of the best bond ETFs because of its high liquidity.

Sign-up & trade AGG ETF

76% of retail CFD accounts lose money. Your capital is at risk.

3. Flexshare Credit-Scored US Long Corporate Bond Index Fund [LKOR]

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LKOR is a non-diversified fund containing Long Corporate bond index categorised as investment grade by the Northern Trust. It measures dollar-denominated corporate bonds of higher credit quality companies with potentially high yields but low default risk. It has $54 million in assets under management with a yearly yield of 6.5%.

Sign-up & trade LKOR ETF

76% of retail CFD accounts lose money. Your capital is at risk.

4. Vanguard Total Bond Market ETF [BND]

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BND combines both corporate and government bonds and includes approximately 18,000 bonds. However, it favours government bonds to reduce its risk profile. The BND is ranked 8th in the intermediate core bonds. It has close to $306 billion in assets under management yielding average annual returns of 4%.

Sign-up & trade BND ETF

76% of retail CFD accounts lose money. Your capital is at risk.

5. The SPDR Portfolio Long Term Corporate Bond ETF [SPLB]

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The SPLB ETF tracks the Bloomberg Barclays U.S. Long Term Corporate Bond Index. All its underlying bonds’ performance is screened using this index, which measures the performance of corporate bonds with a maturity period of 10 years and above. Considering this, it’s no wonder it is ranked 3rd on the list of the best long-term bonds. It boasts $892 million in assets under management, a low expense ratio of 0.07%, and a yearly yield of 4.11%. All correct at the time of writing.

Sign-up & trade SPLB ETF

76% of retail CFD accounts lose money. Your capital is at risk.

Where to buy the best bonds ETFs

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The easiest way to become part of the bond ETF market is through a broker; either a traditional broker-dealer or an online broker. An online broker is best because you’ll have all the bond ETF varieties under one platform and access to your portfolio 24/7. We have found the best brokers for bond ETFs.

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1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

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2
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
Min. Deposit
$ 0
Best offer
User Score
9.7
Diverse stock selection providing investors with a diverse array of options for their portfolios.
Advanced trading tools aiding in executing trades with precision in the dynamic stock market.
Easy portfolio management.
Start Trading
Payment Methods:
ACH, Bank Wire, Check
Full Regulations:
CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

Invest in Bond ETFs in 3 Steps

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  • Open a Trading Account: choose a broker and open a trading account with them. Activate your new account through the link sent to your email as filled and deposit money into the new trading account.
  • Choose small-cap ETFs: choose whether to invest in bond ETFs or trade them via CFDs. You can also do both.
  • Start Trading: screen the available bond ETFs to see which ones match your investing and trading strategies and open a trade.

What are bonds ETFs?

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A bond ETF, or bond exchange traded fund, is a type of ETF that invests in various types of fixed income securities like government, corporate, and municipal bonds. It allows investors to gain diversified exposure to bond markets in a single fund that trades intraday like stocks.

Bond ETFs hold a portfolio of hundreds or thousands of individual debt instruments and provide returns based on the underlying bonds’ interest payments and price movements. They offer a low-cost way to invest in bonds across sectors, credit quality, and maturities. Bonds are broadly divided into two categories:

  • Government Bonds are bonds issued by the government through the Federal Reserve (in the USA), municipalities, or government agencies.
  • Corporate Bonds are bonds issued by individual organisations. The issuing organisation’s credit rating determines how attractive the bonds are, ranging from high yield bonds that have a risk of default to investment-grade corporate bonds issued by established organisations with excellent credit ratings.

Even though bond ETFs are the safest investment instruments for a steady income, investing in bond ETFs blindly without understanding how bonds work will lead to money loss. The primary factor affecting bond ETF prices and yields are interest rates: they are inversely correlated. When interest rate rises, bond ETFs fall, and vice versa.

In the wake of the coronavirus pandemic, global economies put a cap rate on interest rates, to help ensure the survival of economically viable companies. Interest rates are expected to be maintained at low levels, effectively reducing borrowing costs to spur economic recovery, which would result in a continued increase in the value of bond ETFs for the foreseeable future.

Are bonds ETFs a good investment?

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A bond ETF can be an excellent addition to an investment portfolio due to benefits like instant diversification, low costs, and tax efficiency. Investing a portion in bond ETFs provides stability and income to balance more volatile equities.

The best bond ETFs allow participation in global bond markets while minimising the impact of individual defaults. Bond ETFs offer varying risk and return profiles from safe government and short term bonds to high yield corporate debt. Core bond ETFs like AGG and BND track broad benchmarks and are suitable core holdings.

Bond ETFs are low-risk investments, but interest rates play a critical role in their evaluation and price movement. It is, therefore, prudent to always estimate the fundamentals of interest rates.

Sign up to a broker to buy bonds ETFs

Latest bonds ETFs news

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