: Identified by Morningstar as a top-performing fund for 2017, focusing on higher-yielding opportunities. 2017 Market Highlights & Trends
: Recommended for its ability to navigate rising rates by holding asset-backed bonds, such as private mortgages. bonds to buy 2017
: Noted for its strategy of identifying undervalued bonds by out-analyzing traditional rating agencies. : Identified by Morningstar as a top-performing fund
: Favored for its low fees and high-quality (single-A) holdings, offering a conservative play in a rising-rate environment. : Favored for its low fees and high-quality
The bond market in 2017 was characterized by rising short-term interest rates as the Federal Reserve implemented multiple hikes, yet long-term bonds unexpectedly outperformed short-term counterparts. Investment-grade and high-yield corporate bonds both saw strong returns of 6.4% and 7.5%, respectively, supported by tightening credit spreads.
: The Fed raised short-term rates in March and June, with a third hike in December, bringing the target range to 1.25%–1.50%.
Analysts at Kiplinger and Morningstar highlighted several top performers for the year: