Alaina Bompiedi: Morningstar’s intermediate-term bond category is a melting pot. Most intermediate-term bond funds follow the broad bond market indexes, but many display some unique attributes. The 300 funds in this category have durations ranging from 3.5 to 6.0 years, can exhibit biases for mortgages or corporate bonds, and--in a handful of cases--can carry as much as 30% high yield.
Among such a diverse peer group, newly Gold-rated Baird Core Plus Bond stands out for its consistent style, excellent approach to risk management, and strong stewardship. The fund follows the Bloomberg Barclays Universal Index, which is a good match for the types of bonds it tends to like. The fund invests across a well-trodden landscape of government, mortgage-backed, and corporate debt and can own up to 20% high yield for additional octane.
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Alaina Bompiedi does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.