Fears of rising rates have driven large flows to the category, but investors must take care to not eliminate the 'insurance' that core fixed-income funds offer.
The stock market remains very bullish on the economy, but the bond market is telling investors to be cautious.
The big names in this category have more to prove before we can fully recommend them, says Morningstar's Eric Jacobson.
May was the worst month in over a year for flows to U.S. equities, while many core bond funds are receiving inflows as rising-rate concerns abate.
The rate at which yields rise with maturities can be a key issue for bond investors.
A rise in rates could hurt the bond portion of your college-savings portfolio, but don't lose perspective.
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