
Fed officials signaled that interest rates would need to remain high “for some time” to combat stubborn inflation, which is still well above the Fed’s long-term target of 2%. For investors looking to add some stability to their portfolios, bond ETFs could be an ideal choice, as they stand out for their transparency, liquidity, and low fees.
Given this backdrop, top-performing bond ETFs Vanguard Total Bond Market ETF (BND) and iShares Core 5-10 Year USD Bond ETF (IMTB) could be solid investments this year for instant diversification and a stable income stream.