Best Corporate Bond ETFs (2026)
Which corporate bond fund to hold for extra yield over Treasuries — 17 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- scores 62.4 on the overall model (grade C)
- cheapest in the group at 0.03%
- largest and most liquid at $69.4B
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 17 funds, not across the whole market.
All 17 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 USHYiShares Broad USD High Yield Corporate Bond ETF | US Bonds - Corporate | 0.08% | 6.89% | +4.8% | +26.6% | 3.7% | -4.7% | -0.06 | $28.5B | 62.4 | C |
| 2 SPHYState Street SPDR Portfolio High Yield Bond ETF | US Bonds - Corporate | 0.05% | 7.24% | +4.9% | +26.3% | 3.7% | -4.8% | -0.03 | $11.3B | 61.5 | C |
| 3 VCITVanguard Intermediate-Term Corporate Bond Index Fund ETF Shares | US Bonds - Corporate | 0.03% | 4.78% | +3.2% | +17.5% | 4.1% | -6.0% | -0.45 | $69.4B | 60.1 | C |
| 4 VCSHVanguard Short-Term Corporate Bond Index Fund ETF Shares | US Bonds - Corporate | 0.03% | 4.44% | +3.4% | +16.8% | 1.9% | -1.4% | -0.81 | $51.8B | 60.0 | C |
| 5 IGSBiShares 1-5 Year Investment Grade Corporate Bond ETF | US Bonds - Corporate | 0.04% | 4.57% | +3.5% | +17.3% | 2.0% | -1.5% | -0.75 | $22.3B | 58.8 | C |
| 6 IGIBiShares 5-10 Year Investment Grade Corporate Bond ETF | US Bonds - Corporate | 0.04% | 4.79% | +3.3% | +18.1% | 4.1% | -5.9% | -0.42 | $18.5B | 58.1 | C |
| 7 SHYGiShares 0-5 Year High Yield Corporate Bond ETF | US Bonds - Corporate | 0.30% | 7.00% | +4.6% | +24.1% | 3.2% | -4.5% | -0.13 | $7.6B | 57.5 | C |
| 8 ANGLVanEck Fallen Angel High Yield Bond ETF | US Bonds - Corporate | 0.25% | 6.32% | +5.2% | +24.6% | 4.3% | -5.5% | 0.05 | $3.1B | 57.4 | C |
| 9 USIGiShares Broad USD Investment Grade Corporate Bond ETF | US Bonds - Corporate | 0.04% | 4.72% | +3.0% | +15.1% | 4.1% | -5.9% | -0.49 | $17.6B | 57.1 | C |
| 10 JNKState Street SPDR Bloomberg High Yield Bond ETF | US Bonds - Corporate | 0.40% | 4.45% | +4.9% | +25.5% | 3.8% | -5.0% | -0.02 | $7.3B | 57.1 | C |
| 11 FALNiShares Fallen Angels USD Bond ETF | US Bonds - Corporate | 0.25% | 6.41% | +5.7% | +27.3% | 4.6% | -5.9% | 0.14 | $1.6B | 56.9 | C |
| 12 HYGiShares iBoxx $ High Yield Corporate Bond ETF | US Bonds - Corporate | 0.49% | 4.80% | +4.3% | +25.3% | 3.8% | -4.6% | -0.18 | $17.6B | 56.3 | C |
| 13 SJNKState Street SPDR Bloomberg Short Term High Yield Bond ETF | US Bonds - Corporate | 0.40% | 7.00% | +4.3% | +24.2% | 3.2% | -4.8% | -0.21 | $4.9B | 55.1 | C |
| 14 LQDiShares iBoxx $ Investment Grade Corporate Bond ETF | US Bonds - Corporate | 0.14% | 3.00% | +2.1% | +12.5% | 5.3% | -8.2% | -0.54 | $33.1B | 55.0 | C |
| 15 SLQDiShares 0-5 Year Investment Grade Corporate Bond ETF | US Bonds - Corporate | 0.06% | 4.31% | +3.6% | +16.4% | 1.5% | -1.1% | -0.92 | $2.4B | 54.6 | C |
| 16 VCLTVanguard Long-Term Corporate Bond Index Fund ETF Shares | US Bonds - Corporate | 0.03% | 5.52% | +1.8% | +8.5% | 7.8% | -12.5% | -0.41 | $10.1B | 53.0 | C |
| 17 VTCVanguard Total Corporate Bond ETF ETF Shares | US Bonds - Corporate | 0.03% | 4.91% | +2.8% | +14.2% | 4.3% | -6.2% | -0.50 | $1.8B | 52.7 | C |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
Corporate bond funds pay more than Treasuries because they can default. Investment-grade funds take modest credit risk; high-yield funds take a lot, and behave more like equities than bonds in a downturn.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best corporate bond ETF?
USHY leads the 17 corporate bond funds tracked with a score of 62.4 (C).
Are high-yield bond ETFs worth the risk?
High-yield funds correlate with equities far more than investment-grade bonds do, which means they tend to fall exactly when you need your bonds to hold up. That makes them a poor substitute for portfolio ballast, whatever the headline yield.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.