Are These Riskier Bond ETFs Worth the Higher Yields?

Bond yields are much higher today than they were in the era of zero interest rates. The income is drawing interest from investors wanting to benefit from the juicier payouts, and the money is flowing in. Multisector bond ETFs attracted $25 billion over the first 10 months of the year. High-yield bond ETFs had less, but still collected $6.7 billion. What are the risks of these ETFs, and how do they fit in your portfolio? Dan Sotiroff is the associate director for US passive strategies for Morningstar. 

It’s Been a Long Time Since Bonds Looked This Good 

On this episode: 
00:00:00 Welcome 
00:01:16 Multisector Bond ETFs: What They Are and What They Own 
00:02:51 High-Yield vs. Multisector Bond ETFs: Similarities and Differences 
00:03:39 Risks of Higher-Yield Bond ETFs and Where They Stand Now 
00:06:16 How Multisector and High-Yield Bond ETFs Performed in 2026 
00:07:52 Where Money Is Flowing, Diversification, and Time Horizon 
00:11:15 Multisector and High-Yield Bond ETFs Morningstar Analysts Like, Plus Takeaway 

Check out more from Morningstar: 
Want to Invest in Anthropic? Here’s What to Know Before the IPO 
Don’t Focus on Utilities Stocks’ Low Dividend Yields 
Mortgage Rates Are Above 7%. Is It Better to Rent or Buy a Home Right Now? 

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This episode is sponsored by Vanguard: https://advisors.vanguard.com/engagement/fixed-income 

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