3 Great Funds for 2023 and Beyond
Get paid while you wait for the market to rebound.
Russ Kinnel: The upside of a brutal market in 2022 is that stocks and bonds are priced for solid returns going forward, and they even come with something we haven’t seen in a while: decent yields. Here then are three funds that look appealing to me for the long-term investor.
3 Great Funds for 2023 and Beyond
These funds earn Morningstar Analyst Ratings of Silver or Gold.
- PGIM Short Duration High Yield Income HYSAX
- Dodge & Cox Global Bond DODLX
- Vanguard High Dividend Yield Index VHYAX
If you want high-yield with less interest-rate risk, consider Silver-rated PGIM Short Duration High Yield Income. Despite a duration of just three years, the fund still has a yield of 7.8%—nearly matching those of the longer-term high-yield funds. This fund’s 5.9% loss in 2022 was half the category average, so it’s not a bad deal. PGIM has a strong high-yield team that is comparable to those at T. Rowe Price or Fidelity.
Dodge & Cox Global Bond sticks to investment-grade fare, so its yield is a more modest 5.9%, but that’s still pretty nice for a high-quality investment-grade fund. As with Dodge & Cox’s domestic-bond fund, this one mostly sticks to corporate bonds, government bonds, and mortgage-backed securities. We rate it Gold.
Finally, I have an equity fund that is worth a look. Vanguard High Dividend Yield Index is a Silver-rated fund that aims for stocks with robust yields, but it’s well-constructed to avoid the stocks with the highest risk.
Watch “T. Rowe Price’s Brutal 2022″ with Russ Kinnel.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.