It tracks the Bloomberg US Universal Enhanced Yield Index and diversifies across a broad range of US dollar-denominated bond sectors. Rather than simply following market weights, it overweights higher-yielding sectors in pursuit of additional income.

It suits investors who want exposure to the overall US bond market at a low cost while expecting higher interest income than a standard index offers.

It is a passive (index-tracking) ETF launched by WisdomTree in 2023.

The fund divides the entire US bond market into six sectors and allocates more weight to higher-yielding sectors while maintaining duration (weighted average time to maturity). It takes a universal approach that spans everything from Treasuries to high-yield bonds.

• Pursues higher income than traditional indexes
• Integrated exposure to a variety of bond sectors

Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.15% per year.

The low fee keeps the cost burden light for long-term holders, and the extra-yield strategy can be especially effective in a rangebound rate environment.

As bond prices remain volatile amid shifts in the Federal Reserve's rate policy, the fund aims to deliver stable results on the back of relatively high coupon income.

Money continues to flow in steadily from investors seeking stable monthly dividends and income, and the fund is increasingly chosen as a way to boost yield within core bond portfolios.

Broad diversification and a yield enhancement strategy are its strengths, but interest rate risk and some exposure to lower-rated bonds deserve attention.

BNDX, shown in the table, invests in international bonds, while IUSB is a similar product that tracks a broad US bond index. Active ETFs such as BINC and PYLD differ in that they pursue more flexible income strategies at the discretion of the manager. If you would rather invest in the standard benchmark of the US bond market, AGG and BND are the representative alternatives.

Bond investing is heavily influenced by interest rate movements and the credit environment, so before investing it is necessary to examine each of the following key checklist items closely.

Downward pressure on bond prices can intensify during rate-hiking periods, and credit risk from the portfolio's high-yield bonds may come to the fore when the economy slows.

This is a smart beta bond product that invests across the US bond market while seeking alpha relative to the index. With its low fee and attractive monthly dividends, it is well suited as part of a core portfolio.