February 18, 2021 Bonds are integral components in any retirement portfolio. Corporate bonds can carry higher yields than domestic government debt. When it comes to corporate bonds, passive index-based strategies are often the way to go for retirees. Consider the USIG follows the ICE BofAML US Corporate Index and holds nearly 6,800 bonds, giving it one of the deepest benches in the investment-grade corporate bond fund category. “Exchange-traded funds tracking indexes that are representative of the broad investment-grade corporate bond market are a solid option for exposure to this asset class,” writes Morningstar analyst Neal Kosciulek. “Portfolios that mimic the contours of this opportunity set and boast low fees have been difficult for active managers to beat. Over the 10 years through June 2020, just 40% of actively managed funds in the corporate bond Morningstar Category managed to survive and outperform the average of their passive peers.”