: If held to maturity, you are guaranteed to get your principal back (barring issuer default). There are no ongoing management fees.
: Instant diversification across hundreds of bonds, professional management, and high liquidity (can be sold any day the market is open). buy short term bonds
Short-term bonds (maturities of ) offer a middle ground between low-yield cash and the price volatility of long-term bonds. In early 2026, they have become particularly attractive as yield curves flattened or inverted, often allowing investors to capture similar or higher yields than long-dated bonds with significantly lower interest rate risk. 1. Choose Your Investment Method You can buy short-term bonds through two primary vehicles: Bond ETFs & Mutual Funds : : If held to maturity, you are guaranteed
: Higher barrier to entry (often $1,000+ minimums), less diversification, and potentially higher trading costs (bid-ask spreads). 2. Top-Rated Short-Term Options (2026 Data) Short-term bonds (maturities of ) offer a middle
: You pay an expense ratio (annual fee), and the fund's value fluctuates daily; unlike individual bonds, most funds never "mature" to return your original principal. Individual Bonds :
As of April 2026, several ETFs are widely recommended for different risk appetites: ETF Name (Ticker) Core Focus 30-Day SEC Yield Expense Ratio ( BSV ) US Treasuries & Corporate Schwab Short-Term US Treasury ( SCHO ) 1–3 Year US Treasuries First Trust LTD Duration IG Corp (FSIG) Investment-Grade Corporate SPDR Bloomberg Short Term High Yield ( SJNK ) Higher-risk "Junk" Bonds Data sources: The Motley Fool , Morningstar . How to Use Short-Term Bonds in Your Portfolio - Morningstar