When planning for retirement, investors typically use a mix of equity (stock-based) and fixed-income investments. If you’re young with many years until retirement, your portfolio is likely to lean heavily towards equities. This is because you have the time to recover from any short-term market fluctuations. As you get closer to retirement, your portfolio should gradually shift towards safer investments, such as bonds and other fixed-income securities.

Choosing the right bond investments can be complex and daunting. Despite the focus often being on stocks, the bond market is actually larger. In 2022, the global bond market was valued at about $129.8 trillion, whereas the global equity market was valued at $101.2 trillion, according to the Securities Industry and Financial Markets Association.

Here are some top bond funds to consider for your retirement portfolio.

The iShares Core U.S. Aggregate Bond ETF aims to offer comprehensive exposure to the U.S. investment-grade bond market, with over 70 percent of its holdings in AAA-rated securities.

  • 5-year annualized return: -0.2 percent
  • Yield: 4.7 percent
  • Expense ratio: 0.03 percent

The Vanguard Total Bond Market ETF aims to mirror the performance of a comprehensive, market-weighted bond index. This fund provides exposure to the taxable investment-grade U.S. bond market, with approximately two-thirds of its portfolio invested in U.S. government bonds.

  • 5-year annualized return: -0.2 percent
  • Yield: 4.7 percent
  • Expense ratio: 0.03 percent

The Fidelity U.S. Bond Index Fund aims to replicate the total return of the debt securities in the Bloomberg Barclays U.S. Aggregate Bond Index. The fund generally invests at least 80 percent of its assets in securities that are part of this index.

  • 5-year annualized return: -0.2 percent
  • Yield: 4.6 percent
  • Expense ratio: 0.025 percent

The Vanguard Short-Term Corporate Bond ETF primarily invests in high-quality investment-grade corporate bonds, aiming to provide current income with minimal volatility. The fund maintains a dollar-weighted average maturity ranging from one to five years.

  • 5-year annualized return: 1.7 percent
  • Yield: 5.3 percent
  • Expense ratio: 0.04 percent

The iShares Floating Rate Bond ETF aims to track the investment performance of an index of U.S. investment-grade floating rate bonds with maturities between one month and five years. These bonds adjust their interest payments in line with changes in interest rates, making them appealing during periods of rising rates.

  • 5-year annualized return: 2.8 percent
  • Yield: 5.8 percent
  • Expense ratio: 0.15 percent

The Fidelity Investment Grade Bond Fund is an actively managed fund aiming to provide a high level of current income. It generally allocates at least 80 percent of its assets to various types of investment-grade bonds.

  • 5-year annualized return: 0.7 percent
  • Yield: 4.9 percent
  • Expense ratio: 0.45 percent

The Schwab U.S. Aggregate Bond Index Fund aims to track the investment performance of an index representing the entire U.S. investment-grade bond market. With no investment minimums and a low expense ratio, it is an excellent choice for a core bond holding in a diversified portfolio.

  • 5-year annualized return: -0.3 percent
  • Yield: 4.6 percent
  • Expense ratio: 0.04 percent

Bond funds are available through most online brokerage platforms, though the selection may vary by broker. Bond ETFs are typically offered by all major online brokers, making them easily accessible if you’re interested in purchasing one.

For mutual funds, availability can differ significantly between brokers. Not every broker offers every mutual fund, so it’s important to check if a specific broker provides access to the mutual fund you’re interested in. Start by exploring the best brokers for mutual funds and use their mutual-fund screener tool to determine if the bond fund you want is available for purchase.