Top Fixed-Income Performers
Editor's note: This is the last in a series of articles running all week on fixed-income ETFs.
Big fixed-income ETFs have largely done TK their jobs this year, shielding investors’ money from the wild fluctuations of a stock market reacting to surprises in President Donald Trump’s economic agenda.
The biggest fixed-income exchange traded fund, the $132.6 billion Vanguard Total Bond Market ETF (BND) has returned 4.7% through Aug. 4. While that lags the 8.4% gain in the Vanguard S&P 500 ETF (VOO), one can make the case that BND has provided a solid gain while protecting investors from whiplashing equities, which briefly dropped into bear market territory before rocketing back into a bull market. Where it goes next is anyone’s guess.
With markets uncertain about the future and the Trump agenda—some experts fear inflation while others worry about stocks spinning downward—bonds are maintaining their safe-haven appeal.
BND
The $129 billion Vanguard Total Bond Market ETF (BND) may not have set the investing world on fire with its 4.7% gain so far in 2025, and that’s how it should be.
Investors have poured $9.4 billion into the fund, which owns more than 11,000 issues, according to FactSet data. It pays a monthly dividend of around 24 cents a share, which has generally increased in the past two years.
AGG
The second-largest fixed income ETF, the $127.9 billion iShares Core U.S. Aggregate Bond ETF (AGG), runs neck and neck with BND, recording a 4.8% gain so far this year. It’s pulled in $6.1 billion in 2025 as it tracks an index of U.S. investment-grade bonds. The index is market-weighted and includes government as well as investment-grade corporate bonds. Its monthly dividend is much more generous than BND, paying around 31 cents a share.
BNDX
Investors looking for exposure to non-U.S. fixed income may seek out the No. 3 bond ETF, the $68.3 billion Vanguard Total International Bond ETF (BNDX). They would have been rewarded with a modest 2.4% gain this year.
Still, it found plenty of buyers, with the ETF pulling in net inflows every session this year except one, hitting a net $5.9 billion. It pays around a dime per share monthly from investments in mostly European bonds.
VCIT
The $53.9 billion Vanguard Intermediate-Term Corporate Bond ETF (VCIT) performed the best among the big five, gaining 6.5%.
Its biggest holdings are Bank of America Corp. (BAC) and Pfizer Inc. (PFE) notes, and it has a 5.3% yield. It’s had net inflows of $3.7 billion this year and pays a monthly dividend of approximately 34 cents a share.
TLT
It’s been a twisting 2025 for the $47.5 billion iShares 20+ Year Treasury Bond ETF (TLT), which is among the best-known bond ETFs. Tracking the far end of the yield curve, Treasurys with maturities of 20 years or more, TLT has gained 3.4% this year, after being little-changed for much of the year. Investors have shown their displeasure by pulling $3.2 billion from the fund.
Still, the fund has paid a dividend that’s recently ranged from 29 cents to 35 cents a share.
