5 Best High Yield Bond Funds

High-yield bonds offer the potential for investors to earn higher returns when they are comfortable carrying additional credit risks.

High-yield bonds are issued by entities with low credit ratings from bond rating agencies such as Moody’s, Standard & Poor’s, and Fitch. A combination with a rating below a certain threshold is considered a non-investment grade or a high yield. High-yield bonds are also known as junk bonds due to their poor credit quality. This means that bond issuers are more likely to default.

Due to the additional risks associated with high-yield bonds, investors can expect to get a higher return compared to safer bonds. The yields on these non-investment grade bonds are higher than government bonds, allowing investors to earn more income than the price they paid for the bonds.

Mutual funds and ETFs are some of the easiest ways to be exposed to high-yield bonds, offering portfolios of hundreds or even thousands. This is something you should know about some of the top funds with high yield bonds and to consider for your portfolio.

(Generate the following data from MorningStar June 11th, 2025.))

Vanguard High-Yield Corporate Fund (VWEHX)

The Vanguard High-Yield Corporate Fund invests in medium and low quality corporate bonds. Fund managers invest in what they consider to be highly rated junk bonds. The fund holds approximately 900 different bonds.

• yield: 6.2%
• Cost Ratio: 0.22%
• Asset assets: $24.6 billion

iShares iboxx $High Yield Corporate Bond ETF (
Higue

))

This iShares ETF is one of the most popular high-yield bond ETFs and is intended to track the investment performance of an index made up of US high-yield corporate bonds. The fund had more than 1,200 bonds as of June 2025, with a weighted average maturity of approximately five years.

• yield: 5.8%
• Cost Ratio: 0.49%
• Asset assets: $16.4 billion

JPMorgan Betabuilders USD High Hight Corporate Bond ETF (

bbhy

))

This JPMorgan ETF is trying to replicate the investment performance of the US high-yield corporate bond index. As of June 2025, the fund had approximately 1,500 bonds.

• yield: 7.8%
• Cost Ratio: 0.07%
• Asset assets: $446.6 million

SPDR Portfolio High Yield Bond ETF (

Sphy

))

The SPDR Portfolio High High Bond ETF aims to closely match the investment performance of high-yield bond indexes, including US high-income bonds, with factors such as the minimum of $250 million to maturity for at least one year.

• yield: 7.7%
• Cost Ratio: 0.05%
• Asset assets: $8.5 billion

Vaneck High High Muni etf (

Hyd

)*

The Vaneck High High Muni ETF aims to match the investment performance of the index, which tracks the US high-yield, long-term tax-exempt bond market. The fund’s bonds are generally exempt from federal income taxes, which is why the listed yields are lower than those on taxable funds.

• yield: 4.4%
• Cost Ratio: 0.32%
• Asset assets: $3.3 billion

*Note: Investors calculate to compare municipal bond funds with taxable funds A substantial taxable yieldcan be determined by dividing the local government’s yield by (1 tax rate).

How to buy a high-yield bond fund

High-yield bond funds can be purchased from almost any online brokerage company, but some brokers may offer a wider service.

• Bond ETF It is usually available at the best online brokers. So, if you are trying to invest in one, you may find what you are looking for in a top broker.
• However, the situation differs in mutual funds. Not all mutual funds are offered by all brokers, so it makes sense to see if a potential broker will offer the mutual fund you are looking for. Start with the best brokers for mutual funds and see who has access to the bond funds you want to buy.

Keep in mind that high-yield bond investors can suffer during economic slump or recession as more issuers default because they are unable to pay interest. Yields could increase, lowering bond prices in search of additional revenues to compensate for higher risk. Due to extra risk, high-yield bonds may usually produce attractive returns, but are not usually considered one of the best investments.

Conclusion

High-yield bonds are a way to boost your portfolio returns, but they should only be included in already diversified portfolios. Bonds are less volatile than stocks, but high-yield bonds can act like stocks because of additional risk. Compared to high-ranking bonds, you need to make sure that the additional returns available on high-yield bonds compensate you appropriately.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Furthermore, investors recommend that past investment products performance is not a guarantee of future price increases.