9 Top-Performing Intermediate Core-Plus Bond Funds

Intermediate core-plus bond funds can offer investors more income in exchange for taking on more risk than intermediate core funds. These nine funds are the best-in-category options for investors looking for that boost in yield.

To screen for the top-performing funds in this category, we looked for those with the best returns over the last one-, three-, and five-year periods. All names that passed the screen were actively managed.

Intermediate Core-Plus Bond Funds Performance

• Aristotle Core Income Fund PLIIX
• Calvert Income Fund CINCX
• Eaton Vance Total Return Bond ETF EVTR
• Franklin Core Plus Bond Fund FGKNX
• Guggenheim Total Return Bond Fund GIBRX
• JPMorgan Core Plus Bond ETF JCPB
• MFS Income Fund MFIWX
• Nuveen Core Plus Bond Fund TIBFX
• Victory Pioneer Bond Fund PBFKX

Over the last 12 months, intermediate core-plus bond funds have returned 3.88%. On an annualized rate, intermediate core-plus bond funds have returned 2.91% over the last three years and lost 0.05% over the last five years. That compares with the Morningstar US Core Bond Index, which has returned 3.29% over the last 12 months, gained 2.24% per year over the last three years, and lost 0.88% per year over the last five years.

What Are Intermediate Core-Plus Bond Funds?

Intermediate-term core-plus bond portfolios invest primarily in investment-grade US fixed-income issues, including government, corporate, and securitized debt, but generally have greater flexibility than core offerings to hold noncore sectors such as corporate high yield, bank loan, emerging-markets debt, and non-US currency exposures. Their durations (a measure of interest rate sensitivity) typically range between 75% and 125% of the three-year average of the effective duration of the Morningstar Core Bond Index.

Screening for the Top-Performing Intermediate Core-Plus Bond Funds

To find the best intermediate core-plus bond funds, we looked at returns data from the past one, three, and five years using data in Morningstar Direct. We screened for open-ended and exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We excluded funds with assets under $100 million and analyst coverage that was not 100%. This left nine funds.

Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors outside of retirement plans, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. In addition, Medalist Ratings may differ among the share classes of a fund.

Aristotle Core Income Fund

• Morningstar Medalist Rating: Bronze
• Morningstar Rating: ★★★★★

Over the past 12 months, the $3.1 billion fund has gained 4.25%, while the average fund in its category is up 3.88%. The fund, launched in December 2010, has climbed 3.98% over the past three years and 0.78% over the past five.

“Aristotle Core Income’s tilt toward corporate credit risk and to a lesser degree structured credit risk limits its breadth, but with its seasoned and skilled team and astute security selection the strategy retains its Above Average People and Process ratings.

“The fund has four named managers. With his year-end 2010 start date, David Weismiller has the longest tenure. Comanagers Brian Robertson and Michael Marzouk joined him in 2016 and asset-backed securities specialist Ying Qiu in 2021, having joined Aristotle from Pimco in 2016. Including portfolio managers, the research team supporting this effort has grown to 17 members, three recent analyst additions. Most portfolio managers double as credit analysts and most analysts have dual sector coverage responsibilities, but they are predominantly seasoned professionals.

“The fund uses a fundamentally driven approach that prioritizes corporate debt: investment-grade, high-yield, and bank loans (63% of the portfolio as of June 30, 2024). This reflects where the team’s center of expertise lies; the fund doesn’t want to be everything to everyone and prefers to focus on what the team thinks it can do well. A qualitative overlay that reflects management’s view on the priciness of the markets and their risk appetites, as well as the relative value of different sectors, supplements the fundamental research and has been reasonably successful in guiding the allocation of the fund’s risk budget.

“Relative to peers, who, like this fund, also often widely diverge—albeit in a more diversified way—from the Bloomberg US Universal Index Morningstar Category benchmark, the strategy’s returns have been excellent, though at the cost of elevated volatility. That is best illustrated by relatively poor showings in credit stress periods such as 2014-15, 2018’s fourth quarter, and the coronavirus market meltdown in February and March of 2020.”

—Maciej Kowara, principal, fixed-income strategies

Calvert Income Fund

• Morningstar Medalist Rating: Neutral
• Morningstar Rating: ★★★★★

Over the past 12 months, the $1.1 billion fund has gained 6.55%, while the average fund in its category is up 3.88%. The fund, launched in February 1999, has climbed 5.01% over the past three years and 1.81% over the past five.

“Calvert Income combines a disciplined investment process with a commitment to environmental, social, and governance factors, offering a compelling choice for income-seeking investors.

“Managed by a team drawing from Calvert, Eaton Vance, and Morgan Stanley, the fund applies a thoughtful approach to credit selection, sector rotation, and ESG integration. Led by Vishal Khanduja and Brian Ellis, both of whom have significant tenures at the fund, the managers have consistently delivered risk-adjusted returns while maintaining lower-than-average volatility relative to peers. In recognition of their strengths, both the People and Process ratings have been upgraded to Above Average from Average.

“The fund’s team and process have been strengthened following the integration of Calvert’s fixed-income team with first Eaton Vance and then Morgan Stanley’s global resources. This has brought greater research depth, especially in areas like high-yield and bank-loan analysis. Despite some senior-level turnover at Morgan Stanley’s fixed-income division, Khanduja and Ellis have provided consistent leadership. The independent Calvert ESG team continues to play a key role in ensuring that the fund’s ESG-focused strategy is effectively implemented, with a focus on identifying issuers that manage financially material ESG risks well.

“In terms of process, the fund employs a pragmatic approach to investing, balancing income generation with risk management. The ESG filter limits exposure to sectors such as energy and thus should count as a negative—any restriction on the investment universe cannot but weaken a fund’s risk/reward potential—but this has not hindered the fund’s performance. The managers’ ability to make sensible, somewhat contrarian, bets and good security selection have been the key drivers of success. The fund is categorized as a US corporate bond fund, but its flexibility across sectors and its diversified portfolio could also make it a plausible candidate for filling a role assigned to core-plus bond or multisector bond Morningstar Category offerings.

“Over Khanduja’s tenure, the fund has delivered top-quartile results in its category. Even if performance was challenging during periods of credit market distress, such as 2018’s fourth quarter or the coronavirus-driven meltdown, volatility and maximum drawdowns statistics have remained below category norms, making the fund an attractive option for investors seeking moderate income with controlled downside risk.”

—Maciej Kowara

Eaton Vance Total Return Bond ETF

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★★

Over the past 12 months, the $2.5 billion fund has gained 4.91%, while the average fund in its category is up 3.88%. The fund, launched in November 1984, has climbed 3.79% over the past three years and 0.41% over the past five.

“Eaton Vance converted the mutual fund to an exchange-traded fund in March 2024 from its open-end incarnation when it was known as Morgan Stanley Institutional Core Plus Fixed Income. The conversion proved commercially successful: The new vehicle more than doubled the assets of the old fund in less than a year, reaching USD 1.36 billion by the end of January 2025.

“The same team that oversees other offerings under Morgan Stanley, Eaton Vance, or Calvert brands manages this active ETF. This diverse branding structure stems from Morgan Stanley’s acquisition of Eaton Vance, which had previously acquired Calvert. While this multibrand approach may evolve over time, the Calvert brand will likely maintain its distinctive environmental, social, and governance focus. Lead managers Vishal Khanduja and Brian Ellis leverage the firm’s considerable resources, particularly in credit research. Khanduja, who originally came from Calvert, now heads Morgan Stanley’s fixed-income broad markets team, which directs investment decisions across multiple sectors including credit, structured products, and mortgage-backed securities. Khanduja and Ellis (also formerly from Calvert) have nearly two decades of industry experience each. Matthew Dunning, a Morgan Stanley veteran on the investment side, supports the comanagers. Brandon Matsui, though listed as a comanager, primarily oversees the operational aspects of running the ETF with his dedicated implementation team.

“The fund operates within specific investment parameters: no more than 20% of assets in below-investment-grade securities, 20% in emerging-markets debt, 10% in non-US-dollar-denominated bonds, and a maximum of 35% in nonagency MBS. Beyond these constraints, the investment process follows a well-established approach for broad fixed-income market exposure that has proved successful across the team’s other managed vehicles. Their methodology combines a six- to 12-month macroeconomic outlook with relative-value analysis to determine sector allocations, while specialized sector teams handle individual security-selection decisions.

“The fund’s relatively low 31-basis-point expense ratio enhances its appeal as an attractive vehicle for investors seeking broad, diversified fixed-income exposure and active management.”

—Maciej Kowara

Franklin Core Plus Bond Fund

• Morningstar Medalist Rating: Neutral
• Morningstar Rating: ★★★★★

Over the past 12 months, the $2.5 billion Franklin Core Plus Bond Fund rose 4.65%, while the average fund in its category rose 3.88%. The fund, launched in May 2013, has climbed 4.89% over the past three years and 2.43% over the past five.

“Franklin Core Plus Bond (formerly Strategic Income) adopted its new name in late 2024 following a mandate change that capped below-investment-grade exposure at 30%, about half of its October 2021 peak of 59%. The fund had been gradually reducing this exposure over recent years, leading Franklin to petition for its recategorization as an intermediate core-plus bond Morningstar Category offering. Additionally, the fund tightened its duration guidelines to within 1.5 years of the Bloomberg US Aggregate Bond Index. These changes appear to reflect both the firm’s increasingly risk-aware fixed-income approach under CIO Sonal Desai and a practical response to the fund’s mediocre performance compared with its multisector bond peers, which may have had an impact on sales.

“The evolution of the fund’s management team continues independently as well. In September 2024, Michael Salm, who previously served as CIO of Putnam’s fixed-income group, joined the existing five-person team following Franklin’s acquisition of Putnam in early 2024. The team’s previous significant restructuring occurred in 2022, when one portfolio manager departed, and another returned to research. Since then, Patrick Klein has led day-to-day management, with Desai providing strategic direction and other comanagers focusing on their specialized areas. Salm, the newest addition, brings particular expertise in structured products.

“The core investment process remains unchanged beyond the drop in junk bond exposure and reduced duration flexibility. The strategy team determines top-down portfolio positioning, while sector teams handle security selection and trading within their respective sleeves. An asset-allocation optimization model initiates positioning discussions, with the team then adjusting allocations based on fundamental analysis.

“With recategorization to intermediate core-plus pending, peer-relative performance comparisons are not currently meaningful. However, the fund’s R6 share class has consistently outperformed both the Aggregate and Bloomberg US Universal indexes across all standard periods. This outperformance is unsurprising given the portfolio’s significantly higher historical allocations to below-investment-grade credit (compared with the Aggregate Index’s zero exposure and the Universal Index’s 6%-7%), though this positioning is also reflected in above-benchmark volatility statistics.”

—Maciej Kowara

Guggenheim Total Return Bond Fund

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

Over the past 12 months, the $28.6 billion fund has gained 5.07%, while the average fund in its category is up 3.88%. The fund, launched in October 2016, has climbed 3.53% over the past three years and 0.29% over the past five.

“CIO Anne Walsh and CIO of Fixed Income Steven Brown have kept in place the model designed by Walsh’s predecessor Scott Minerd, who passed away in 2022. They manage Guggenheim Total Return Bond and related strategies along with Adam Bloch and Evan Serdensky. The team draws on a vast group of other managers and researchers, including more than 50 for corporate credit, in addition to sizable teams focused on macro, rates, and structured credit.

“The team operates within a distinctive framework developed with behavioral finance in mind. It segments decision-making among groups focused on sector research, macro research, portfolio construction, and portfolio management, and boasts a deliberate, slowed-down process to avoid mistakes. The size, depth, and quality of the work done by the corporate credit team, which rolls up to the analysis of many securitized issues, is a critical complement to the efforts of its 20-strong structured-credit group, as well.

“The approach of exploiting inefficiencies among out-of-benchmark bonds has historically meant a large, eclectic sleeve of securitized fare, including roughly 34% in a mix of nongovernment securitized assets such as collateralized loan obligations, asset-backed securities, and nonagency mortgages at the end of 2024. The process is very value driven, though; for example, the team trimmed CLOs to 8.7% from 12.3% at the end of 2022 as valuations tightened.

“An earlier period of derisking helped avoid trouble during 2022’s selloff, but in a rare stumble, exposure to Treasuries and rate-sensitive corporates still drove the fund’s poor showing that year relative to its Bloomberg US Aggregate Bond Index and most of its (distinct) intermediate core-plus bond Morningstar Category peers.

“The good news is that 2022 was unusual, and better conditions helped in both 2023 and 2024. Treasury yields have bounced around across that stretch, which didn’t help much, but the team took advantage of the income from its securitized assets while still trimming risk. Those kinds of pivots have been a big help overall. Cutting risk in 2018 and 2019 made the fund one of the best performers during the early-2020 pandemic-driven selloff, for example. Quickly adding risk back thereafter helped produce top-decile returns for 2020 as a whole.

“Overall, the strategy has produced peer-beating long-term returns and modest volatility, and neither cutting risk in 2018 and 2019 nor its 2022 weakness have tarnished that record.”

—Eric Jacobson, senior principal

JPMorgan Core Plus Bond ETF

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

The $7.3 billion fund has climbed 4.26% over the past 12 months, outperforming the average fund in its category, which rose 3.88%. The J.P. Morgan fund, launched in January 2019, has climbed 3.51% over the past three years and 0.30% over the past five.

“Even with the addition of two relatively untested comanagers to the strategy’s now-six-person management team, JPMorgan Core Plus Bond remains a compelling offering because of the overall group’s experience and the strategy’s sound approach.

“Albeit lacking in money management experience, CIO Kay Herr and rates specialist Priya Misra had considerable industry accomplishments when J.P. Morgan named them to the manager roster here in May 2023 and March 2024, respectively. Herr built J.P. Morgan’s capable research teams and succeeded former lead Steve Lear, who retired in March 2024. Misra was head of global rates strategy at TD Securities before joining J.P. Morgan in 2023.

“Herr and Misra are also surrounded by proven investment talent, starting with their four comanagers. Two-decade veteran Andrew Norelli, a comanager here since 2014, is working closely with Herr and Misra to drive portfolio decisions. Rick Figuly manages the securitized sleeve of the portfolio, while Lisa Coleman and Tom Hauser oversee the investment-grade and high-yield credit sleeves, respectively. The firm’s large global fixed-income platform and its network of specialists help guide macro positioning and contribute to bottom-up ideas.

“A robust, time-tested investment process that combines top-down views with diligent security selection animates the strategy, which comprises a mutual fund (its oldest version to which this report applies), JPMorgan Core Plus ETF JCPB, and a collective investment trust. J.P. Morgan’s quarterly investment meeting sets macro themes while weekly sector meetings focus on relative value and tactical positioning. The lead managers synthesize these inputs to inform overall risk, duration and curve positioning, and sector allocation, and work closely with its sector-focused comanagers, who are responsible for bottom-up security selection.

“The strategy balances its intermediate core bond characteristics with measured risk-taking in off-benchmark stakes. Various types of securitized debt feature prominently, typically 35%-50% of assets. These aren’t plain-vanilla pass-throughs; the team favors mortgage pools that meet its stringent standards that protect against prepayment risk and limit duration extension. High-yield credit is the largest non-investment-grade allocation, and the team adjusts these stakes to its outlook for risk. A cautious macro view has led the team to reduce high yield to about 10% of assets in mid-2024, about 3 percentage points less than two years ago, but recent economic optimism saw Treasuries fall to 24% of assets in June 2024, from 38% a year ago, in favor of investment-grade corporates and agency mortgage-backed securities.

“The strategy’s long-term results stand out. Since Norelli’s March 2014 start, the R6 shares’ 2.6% annualized return through September 2024 beat the Bloomberg US Aggregate Bond Index’s 1.9% and its distinct intermediate core-plus bond Morningstar Category peer median’s 2.3%. The fund’s yield advantage and strong security selection helped the fund’s trailing 12-month 9.5% return through September 2024 outpace more than two-thirds of peers.”

—Paul Olmsted, senior analyst

MFS Income Fund

• Morningstar Medalist Rating: Gold
• Morningstar Rating: ★★★★

The $7 billion fund has climbed 4.49% over the past 12 months, outperforming the average fund in its category, which rose 3.88%. The MFS fund, launched in March 2018, has climbed 3.84% over the past three years and 0.73% over the past five.

“MFS Income, overseen by two experienced managers, has distinguished itself with a robust process and thoughtful use of its risk budget. We initiate coverage with a People Pillar rating of Above Average and a Process Pillar rating of High.

“Morningstar has enhanced the way we assess alpha opportunity for funds, which is a key component in our Morningstar Medalist Rating calculation. More of this strategy’s Medalist Ratings than usual may therefore change with this initiation even in the absence of changes to pillar ratings or fund costs.

“Portfolio managers Josh Marston and Alex Mackey oversee this strategy. Marston, with more than two decades of experience, has been a manager on this strategy since 2015 but stepped into the lead role in February 2017. At that time, comanager Mackey joined the roster. Although Marston is ultimately responsible for performance, this is a collaborative effort when it comes to overall risk positioning and sector allocation. Typically, Mackey takes care of the strategy’s investment-grade corporate credit stake, while Marston is responsible for selection within other sectors. The team is supported by a solid bench of analysts, including a nine-strong securitized debt team (previously five members in 2022). Since March 2023, Mackey and Pilar Gomez-Bravo stepped up as global co-CIOs. While the new responsibilities marginally increased Mackey’s workload, his time continues to be spent mostly on money management, which is comforting.

“The strategy draws the best ideas from MFS’ experienced fixed-income team and aims to outperform the Bloomberg US Aggregate Bond Index by roughly 200-250 basis points over a market cycle. The managers develop a macro-outlook based on the firm’s frequent investment forums and committees, and this outlook drives the portfolio’s sector allocations. At the same time, traditional fundamental analysis drives security selection and feeds into those forums and committees. The managers have exhibited strong execution of this disciplined process, adding value through asset allocation and security-selection decisions. The robust approach, the managers’ thoughtful use of the risk budget, and the support of an experienced analyst team support our conviction.”

—Elbie Louw, senior analyst

Nuveen Core Plus Bond Fund

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

Over the past 12 months, the $4.7 billion Nuveen Core Plus Bond Fund rose 4.12%, while the average fund in its category rose 3.88%. The fund, launched in March 2006, has climbed 3.37% over the past three years and 0.30% over the past five.

“While there have been some shifts to this strategy’s management roster, Nuveen Core Plus Bond’s sensible approach remains intact. Joe Higgins’ ability to leverage sector manager insights into a cohesive portfolio is one of the key strengths here. As Nuveen’s head of multisector portfolio management, he has overseen this strategy since 2020 and has been leading a similar, more-conservative mandate, Nuveen Core Bond, since 2011. He’s supported by four experienced comanagers who bring knowledge in high-yield, securitized, and emerging markets to the effort: Nicholas Travaglino, Katherine Renfrew, Kevin Lorenz, and Kristal Seals. Seals was added to this lineup in early 2025 in anticipation of Lorenz’s retirement midyear after almost 20 years managing the strategy. All told, Nuveen’s robust taxable fixed-income group boasts more than 100 portfolio managers, analysts, and traders who help these managers fulfill their mandate.

“Higgins and team execute a relative value-focused process inside a broad opportunity set, with the bulk of assets in investment-grade securities and a smaller subset in higher-risk ‘plus’ sectors like high-yield bonds, bank loans, and emerging-markets debt that will, in total, typically amount to 10%-30% of portfolio assets depending on Higgins’ outlook and allocation decisions. This ‘plus’ exposure declined over the course of 2022 amid a backdrop of uncertainty and looming recession but grew modestly throughout 2023 and 2024, as a soft-landing became more reasonable, before being reined back in over the first quarter of 2025.

“This approach has largely benefited investors since Higgins took the reins. Over the past five years through March 2025, which roughly overlaps with his tenure, the R6 shares’ 1.6% annualized return beat more than three-fourths of its distinct peers in the intermediate core-plus bond Morningstar Category. Volatility-adjusted returns, as measured by Sharpe ratio, were also impressive, an exhibit of the team’s exercise of good judgment.”

—Elizabeth Foos, associate director

Victory Pioneer Bond Fund

• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

Over the past 12 months, the $5 billion Victory Pioneer Bond Fund rose 4.89%, while the average fund in its category rose 3.88%. The fund, launched in December 2012, has climbed 3.42% over the past three years and 0.87% over the past five.

“Pioneer Bond’s seasoned management team employs a disciplined, relative value approach that has delivered solid long-term results. Lead manager Ken Taubes has steered this portfolio since 1999 and draws support from veteran managers and strong supporting resources. Over the years, the firm has built out a solid management bench behind Taubes. It added Brad Komenda, who brought more than 25 years of industry experience, to the portfolio in 2018. Tim Rowe, an industry veteran, joined the portfolio roster that same year to replace longtime manager Charles Melchreit. Multisector deputy director Jonathan Scott rounds out the group; he began comanaging this strategy in November 2021.

“The managers lean heavily on the firm’s corporate credit and securitized research teams for their bottom-up research. Both groups remain large and experienced, but the corporate credit team has been hit with some recent turnover, and the team’s pending move to Victory Capital, alongside other Amundi US (Pioneer) investment groups, also creates some uncertainty. But the strategy remains in good hands with these managers for now.

“The managers invest at least 80% of the portfolio’s assets in investment-grade issues and will venture into riskier corners of the market such as high-yield bonds, emerging-markets debt, and bank loans to round out the portfolio. The team is disciplined and methodical, and it remains sensitive to valuations across the investable universe, dialing back exposures to sectors when valuations are stretched and increasing allocations when security prices look attractive. For example, the team cut the portfolio’s exposure to high-yield corporate bonds as credit spreads tightened and valuations reached lofty levels in recent years. In June 2024, the portfolio’s stake in these lower-quality bonds stood at 8% of assets, below its 15% five-year average and 20% peak in December 2020.

“The group’s measured approach has resulted in strong performance over manager Taubes’ tenure since January 1999. Over the trailing 10-year period, the fund’s Y shares gained 2.2% annualized and outpaced 70% of distinct intermediate core-plus bond Morningstar Category peers through October 2024. Adjusted for volatility, performance looked equally attractive. The fund’s Sharpe ratio, a measure of excess return relative to excess standard deviation, beat 70% of rivals. This strategy remains a solid pick.”

—Tom Murphy, senior analyst