10 Best Bond Index Funds for 2023: Morningstar

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Morningstar’s recently published list of the best index mutual funds and exchange-traded funds in 2023 covers both U.S. stock index funds and bond index funds. All the funds earned the highest Morningstar Analyst Rating of Gold as of February, meaning analysts consider them most likely to outperform over a full market cycle.

Some of the best bond index funds land in one of Morningstar’s intermediate-term core bond categories. As such, they would make excellent choices to anchor the bond portion of an investor’s portfolio, assuming the goals for the money are six or more years away, Morningstar.com’s senior product manager Susan Dziubinski wrote in a blog post.

Dziubinski said investors saving for a shorter-term goal in the next three to five years might consider short-term bond funds instead, while those with longer time horizons can look to a longer-term bond fund — but be prepared for the enhanced volatility that comes with investing in long-term bonds.

See the gallery for the best bond index funds to invest in now, according to Morningstar.

(Images: Chris Nicholls/ALM)

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