MetWest Total Return Bond Fund might work for the first group, and its MetWest Flexible Income Fund for the second.

A puzzle for all bond-fund investors is how the end of the Covid-19 pandemic might affect interest rates.

Rates usually rise when the economy grows, as it’s expected to do as the world emerges from the pandemic. As that happens, inflation may rise, which could stifle a long bull market in bonds. Bond prices rise as interest rates fall.

Yet renewed inflation has been erroneously predicted before, and Jerome Powell, the chair of the Federal Reserve, has made clear that the bank isn’t rushing to raise the short-term rates it controls.

For investors who are counting on their bond funds for income, continued low rates could create a temptation to court risk.

A more patient approach is prudent, said Mary Ellen Stanek, chief investment officer for Baird Advisors, which oversees the Baird Funds.

“You don’t own bonds for excitement and drama,” she said. “You own them for predictability and lower volatility.”

Ms. Jones of Schwab warned, too, against seeking excessive risk. She suggested investors instead rethink how they take cash from their portfolios.

“In a year when your stocks are up 20 percent and your bonds are up 2, you may want to pull out some of those capital gains and put them in your cash bucket,” she said. “Say you’re looking to generate 6 percent overall, and you’ve made 20 percent in stocks. If you have excess above your plan, you can look at that as potential income.”

No matter what path investors choose, they should always pay close attention to the costs of funds and E.T.F.s, said Jennifer Ellison, a financial adviser at Bingham, Osborn & Scarborough in San Francisco.

“Costs are really important, especially with yields where they are,” since those costs will eat up much of that scant yield, she said. “If you’re a retail investor and you’re buying a loaded bond fund, you’re giving all your yield away up front.”


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