Investors with goals in the three- to 10-year range, those already retired, or anyone seeking portfolio stability often benefit from including bonds. Fixed-income exchange-traded funds (ETFs) offer a simple and cost-effective way to gain this exposure, with many tracking indexes that provide transparency on duration and credit quality. 

Low expenses are especially important for bond ETFs, where returns are typically more modest than in stocks, making cost efficiency a key driver of performance. Morningstar’s highest-rated Gold Medalist bond ETFs—such as Vanguard Total Bond Market ETF (BND), iShares Core US Aggregate Bond ETF (AGG), and Fidelity Total Bond ETF (FBND)—can serve as solid anchors for the fixed-income portion of a portfolio. 

These ETFs span categories like intermediate-term core and core-plus bond funds, with some offering added flexibility to invest in high-yield, bank loans, or emerging-market debt. 

Finsum: For investors seeking stability, diversification, and liquidity, these total market bond ETFs provide a strong starting point.