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9 of Our Favorite Core Plus Bond Funds

These daring intermediate-term bond funds have rewarded investors over time.

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Bond funds are one of the predictably boring parts of many people's portfolio. And that's a good thing. As my colleague Christine Benz pointed out in a recent article examining asset class correlation data, high-quality bonds have been one of the most effective and reliable diversifiers for equity risk in a portfolio. That means that when your stock funds are losing money, your high-quality bond funds are likely holding up well. 

But some investors prefer to be a little more daring with their bond allocation. Core plus fixed-income strategies invest in typical "safe haven" core bond fare, such as intermediate-term Treasury securities and high-quality corporates and mortgages. But core-plus strategies can take on a little more credit risk and/or interest-rate risk than more conservative peers. Core-plus strategies can also invest in more income-oriented or opportunistic fare such as nonagency MBS, lower-quality corporate bonds, or emerging-markets debt, which come with greater return potential but also court greater risk. 

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Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.