With inflation running hot and the Fed well into a tightening cycle yields are beginning to look attractive to income investors, which means the underlying value of bond funds could start to turn around. The second half of 2022 could be ripe for a comeback for an asset class that has had a dismal year and here are some bond funds to look out for. AGG is a prime example of broad exposure to the market with a very safe asset allocation with extensive holdings of treasuries and high-grade corporate debt. Vanguards Total Bond ETF is another example similar to AGG but has more international exposure, but almost exclusively in on investment grade debt. TIP is another ETF with especially great inflation protection measures given the exclusive focus on treasury inflation-protected securities.
Finsum: Leaning into debt has the added benefit of a volatility cushion in these trying times.