Looking for bonds to invest in 2022? You’re in luck! In this blog post, we will discuss 11 bonds that are expected to provide safe and secure returns. We will also go over the pros and cons of each bond so that you can make an informed decision about which one is right for you. So, without further ado, let’s get started!

11 bonds to invest in 2022

1 . Vanguard Total Bond Market ETF (NASDAQ:BND)

Vanguard’s Total Bond Market ETF is one of the bonds to invest in 2022. The fund has over $700 billion in assets and features a low expense ratio of 0.035%.

This makes it one of the most popular bonds to invest in. BND invests in a variety of bonds, including government bonds, corporate bonds, and mortgage-backed securities. The fund has a duration of 5.8 years and a yield of 2.4%.

This makes it a good choice for investors looking for income and stability. When investing in bonds, it is important to remember that they are subject to interest rate risk. This means that if interest rates rise, the value of bonds will fall.

However, bonds are still an important part of any portfolio and can provide stability during times of uncertainty.

2 . Fidelity Investment Grade Bond Fund (MUTF:FBNDX)

The Fidelity Investment Grade Bond Fund (MUTF: FBNDX) is a bonds fund that primarily invests in investment grade bonds. The fund’s objective is to provide high current income and preserve capital.

The fund invests in a variety of bonds, including corporate bonds, government bonds, and mortgage-backed securities. It is managed by Fidelity Investments, one of the biggest asset managers in the world.

The fund has been a top performer in its category over the past five years, returning an average of 7.1% per year. It has a low expense ratio of 0.55%.

The fund is a good choice for investors looking for bonds to invest in 2022. It has an impressive track record and low fees making it a good choice for any investor looking for exposure to the bond market.

3 . Schwab Tax-Free Bond Fund (MUTF:SWNTX)

Many investors are wondering what bonds to invest in for 2022. One option is the Schwab Tax-Free Bond Fund (MUTF: SWNTX). This fund invests primarily in high-quality municipal bonds, which are insulated from federal taxes.

As a result, investors can enjoy a tax-free income, even in high tax brackets. The fund has a relatively low expense ratio of 0.07%, and it has performed well in both up and down markets.

For example, in the first quarter of 2020, when many other bonds were losing value, the Schwab Tax-Free Bond Fund gained 1.46%.

While there is no guarantee that this fund will continue to outperform in the future, it is worth considering for investors who are looking for tax-advantaged income.

4 . VanEck Fallen Angel High Yield Bond ETF (ANGL)

One option for bonds to invest in 2022 is the VanEck Fallen Angel High Yield Bond ETF (ANGL). This ETF invests in bonds that have been downgraded by rating agencies, providing exposure to higher-yielding bonds with the potential for capital appreciation.

The fund has a 0.55% expense ratio and a yield of 5.20%. As of February 28, 2021, the fund had $4.73 billion in assets and held 201 bonds with an average maturity of 8.3 years.

The top holdings of the fund include bonds issued by Sprint Corporation, Caesars Entertainment Corporation, and AMC Entertainment Holdings, Inc.

5 . First Trust Municipal High Income ETF (FMHI)

Looking for bonds to invest in during 2022? FMHI might be a good option for you. This ETF invests in a wide range of bonds, including both general obligation and revenue bonds.

General obligation bonds are typically backed by the full faith and credit of the issuer, while revenue bonds are backed by the revenues generated by the project or facility that they’re financing.

This diversity helps to minimize risk, and the fund has a relatively low expense ratio of just 0.35%. With interest rates expected to remain low in the coming year, FMHI could be a great way to boost your portfolio’s income.

6 . VanEck CEF Muni Income ETF (XMPT) 

If you’re looking for bonds to invest in during 2022, the VanEck CEF Muni Income ETF (XMPT) is a fund worth considering. The fund invests in a variety of municipal bonds, providing investors with exposure to a wide range of issuers.

The bonds in the fund have an average maturity of around 15 years, which helps to provide stability and income. In addition, the fund has a low expense ratio of just 0.55%.

This makes it an extremely efficient way to invest in municipal bonds. And with a yield of 5.67%, it’s also one of the higher-yielding bond funds out there. So if you’re looking for income and stability, the VanEck CEF Muni Income ETF could be a good choice for your portfolio.

7 . Baird Aggregate Bond (BAGIX)

Despite the current low-interest rate environment, bonds can still be a good investment for risk-averse investors. One bond that looks promising for 2022 is the Baird Aggregate Bond Index Fund (BAGIX).

This fund invests in a variety of different bonds, including Treasuries, corporates, and mortgage-backed securities. As a result, it provides investors with a high level of diversification and a relatively low level of risk.

In addition, the fund has a strong track record of performance, outperforming its benchmark index over the past five years. For these reasons, BAGIX looks like an attractive option for bonds to invest in 2022.

8 . Pimco Income (PIMIX)

Pimco Income (PIMIX) is a mutual fund that invests in bonds. The fund has a history of outperforming the markets, and it is one of the best mutual funds to own in a rising interest rate environment.

The fund has a low expense ratio and is diversified across different types of bonds. bonds to invest in 2022. Pimco Income (PIMIX) is a mutual fund that invests in bonds. The fund has a history of outperforming the markets, and it is bonded to invest in 2022.

Pimco Income (PIMIX) is a mutual fund that invests in bonds. The fund has a history of outperforming the markets, and it is one of the best mutual funds to own in a rising interest rate environment.

The fund has a low expense ratio and is diversified across different types of bonds. This makes it an excellent choice for investors looking for bonds to invest in 2022.

9 . Vanguard Short-Term Investment-Grade (VFSUX)

Vanguard Short-Term Investment-Grade (VFSUX) is a solid choice for bonds to invest in 2022. This fund has a reasonable expense ratio of 0.20%, which is significantly lower than the category average of 0.79%.

It also boasts a solid track record, with an average annual return of 3.76% over the past 10 years. The fund invests primarily in high-quality corporate bonds, which have been one of the best-performing asset classes in recent years.

In addition, the fund’s short-term duration makes it less sensitive to rising interest rates. As a result, Vanguard Short-Term Investment Grade is a great option for investors looking for bonds to invest in 2022.

10 . PGIM High Yield (PHYZX)

PHYZX is one of the bonds to invest in 2022. The fund aims to provide high current income, as well as capital appreciation. It invests primarily in high yield bonds, which are bonds that are considered to be below investment grade.

These bonds typically offer higher yields than investment-grade bonds, but they also come with a higher level of risk. PHYZX seeks to mitigate this risk by investing in a diversified portfolio of bonds, as well as by hedging its exposure to interest rate changes.

As a result, PHYZX has the potential to offer investors a high level of income, while still providing some downside protection.

11 . Dodge & Cox Income (DODIX)

Dodge & Cox Income (DODIX) is a mutual fund that invests in bonds. The fund’s objective is to provide income and preserve capital. bonds are debt securities issued by organizations and governments.

They are typically issued for a term of one to 30 years. bonds yield interest payments, which are usually paid semi-annually. The interest payments, along with the return of principal at maturity, make up the total return on the bond.

These bonds are classified as fixed-income securities because they provide a fixed stream of income. Bonds are less risky than stocks but riskier than cash and Treasury bonds.

The fund’s expense ratio is 0.55%. The minimum initial investment is $2,500. The fund’s yield is 2.73%. DODIX is a good choice for investors looking for bonds to invest in 2022.

Conclusion

So, what are you waiting for? These five bonds offer stability and peace of mind while also providing healthy returns. Get in on the action before 2022 arrives and these bonds become a thing of the past!

Next Read: Bonds 101: A Detailed Explanation for Beginners about Money Market