Bond-fund investors need to focus on duration, credit quality, and relative yields to better understand how much risk they're taking on, says Morningstar's Eric Jacobson.
Morningstar's Eric Jacobson outlines three short-term bond funds that can protect against rate sensitivity, but mind the risks as such funds aren't cash substitutes.
And not in the good way, as Morningstar's Eric Jacobson cautions that numerous portfolios in the category have proved to be more volatile and have lower returns than some might think.