Top Fixed Income Funds
Bond funds invest mainly in fixed income such as government debts (US Treasuries), and corporate bonds. These bond funds provide regular income through their yield. Some funds pay monthly yield to investors and some may pay quarterly yield.These top performing ETFs are sorted based on its year to date return in 2016. Will the funds continue outperforming other sectors in 2016? You can find the fund review from this article. Other fund information can be found below such as expense ratio, Morningstar rating, fund’s NAV, managers, fund’s holdings, yield, etc.
The 10 best bond ETFs in 2016 are:
- PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund (ZROZ)
- Vanguard Extended Duration Treasury ETF (EDV)
- iPath US Treasury 5-year Bull ETN (DFVL)
- iShares 20+ Year Treasury Bond ETF (TLT)
- Vanguard Long-Term Government Bond Index Fund (VGLT)
- SPDR Barclays Long Term Treasury ETF (TLO)
- iPath US Treasury 2-Year Bull ETN (DTUL)
- iShares 10-20 Year Treasury Bond ETF (TLH)
- SPDR Nuveen Barclays Capital Build America Bond ETF (BABS)
- Proshares German Sovereign/Sub-Sovereign ETF (GGOV)
PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund (ZROZ)
The PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund is tracking the total return of the BofA Merrill Lynch Long US Treasury Principal STRIPS Index. The current yield is 2.74%. The total net assets are $196 million. Its expense fee is only 0.16%.More: 10 Best ETFs For 2016 & 2017
Morningstar has ranked this top bond ETF in 2016 with 5 stars rating. In 2016, it has year to date return of 11.52%. This PIMCO fund has returned -4.36% over the past 1 year, and 9.71% over the past 3 years. This fund has an effective duration of 27.43%.
Vanguard Extended Duration Treasury ETF (EDV)
This Vanguard Extended Duration Treasury ETF is an index fund. This exchange traded fund invests in zero-coupon U.S. Treasury securities (Treasury STRIPS), which are backed by the full faith and credit of the U.S. government, with maturities ranging from 20 to 30 years. With assets of $1.19billion, it has a yield of 2.89%. The current share price is $124.84.As one of the best bond ETFs in 2016, this fund is ranked with 5 stars rating by Morningstar. This fund has a low expense fee of 0.10%. In 2016, it has year to date return of 10.28%. The 3-year average return of this fund is 9.09%.
iShares 20+ Year Treasury Bond ETF (TLT)
iShares 20+ Year Treasury Bond ETF is categorized as a long government bond fund. This bond fund utilizes its assets to purchase the bonds of the underlying index and at least 95% of its assets in U.S. government bonds. The yield is 2.48%. Its annual report expense ratio fee is 0.15%.More: Best ETFs For 2013
The following is the 5 years return of this iShares fund:
- Year 2016: 6.83% (YTD)
- Year 2015: -1.79%
- Year 2014: 27.30%
- Year 2013: -13.37%
- Year 2012: 2.63%
Bond Fund Returns
| No | Name | Symbol | YTD Return% | 1 Year Rtn |
|---|---|---|---|---|
| 1 | PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund | ZROZ | 11.11% | -6.39% |
| 2 | Vanguard Extended Duration Treasury ETF | EDV | 10.20% | -5.82% |
| 3 | iPath US Treasury 5-year Bull ETN | DFVL | 8.35% | 6.50% |
| 4 | iShares 20+ Year Treasury Bond ETF | TLT | 6.83% | -2.19% |
| 5 | Vanguard Long-Term Government Bond Index Fund | VGLT | 6.54% | -0.86% |
| 6 | SPDR Barclays Long Term Treasury ETF | TLO | 6.40% | -1.68% |
| 7 | iPath US Treasury 2-Year Bull ETN | DTUL | 4.89% | 4.83% |
| 8 | iShares 10-20 Year Treasury Bond ETF | TLH | 4.48% | 1.89% |
| 9 | SPDR Nuveen Barclays Capital Build America Bond ETF | BABS | 4.32% | -1.06% |
| 10 | Proshares German Sovereign/Sub-Sovereign ETF | GGOV | 4.31% | -1.97% |
| 11 | PowerShares 1-30 Treasury Ladder Portfolio | PLW | 4.23% | 0.41% |
| 12 | iShares Credit Bond ETF | CFT | 4.22% | 4.09% |
| 13 | S&P/Citigroup International Treasury Fund | IGOV | 4.14% | -1.00% |
| 14 | iShares 15+ Year U.S. TIPS Index Fund | LTPZ | 4.01% | -9.87% |
| 15 | iShares 7-10 Year Treasury Bond ETF | IEF | 3.96% | 1.99% |
| 16 | PowerShares Build America Bond Portfolio | BAB | 3.88% | 1.34% |
| 17 | SPDR Barclays Intl Treasury Bond | BWX | 3.33% | -2.36% |
| 18 | Vanguard Long-Term Bond ETF | BLV | 3.27% | -5.34% |
| 19 | iPath US Treasury Long Bond Bull ETN | DLBL | 3.16% | -1.86% |
| 20 | SPDR Barclays Capital International Corporate Bond ETF | IBND | 2.86% | -3.30% |
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