3 Promising Bond Funds to Watch in 2023
These relatively new and unique bond strategies have a place on the Morningstar Prospects list this year.
US Videos
Morningstar’s manager research team maintains what we call a Prospects List of interesting strategies, new funds, or under-the-radar managers that we’re considering bringing to full analyst coverage.
Today let’s look at three of the bond funds on our 2023 Morningstar Prospects list.
3 Promising Bond Funds to Watch in 2023
Schwab Municipal Bond ETF is in the muni-national intermediate Morningstar Category and launched in October 2022. This strategy offers investors access to the municipal-bond market for a very low fee. It targets investment-grade munis to keep credit risk low and courts similar interest-rate risk as the average category peer.
JPMorgan Ultra-Short Income ETF is in the ultrashort bond Morningstar Category. It leverages J.P. Morgan’s deep and experienced global liquidity team, and during its short five-plus year tenure, it has become one of the category’s largest offerings. The team buys investment-grade debt with the aim of beating prime money market returns over a market cycle and keeps duration under one year.
GMO Opportunistic Income is in the nontraditional bond category and is led by an experienced veteran. The team utilizes a long-short approach, typically using synthetic credit indexes to offset its credit risk as it invests up and down the securitized credit capital structure. Since its 2017 inception, the team has executed well, resulting in solid performance.
Watch “3 Promising Stock Funds to Watch in 2023″ for more from Stephen Welch.
Stephen Welch does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.