If you are looking for a smart, steady investment in June 2025, bond ETFs are back in the spotlight. We owe some thanks to high yields, market volatility, and people’s growing hunger for portfolio stability for this.

If you want to earn a solid income without sweating the stock market, here are three of the best bond ETFs to buy now, plus the pros and cons of each to guide you.

Vanguard Ultra-Short Bond ETF (VUSB)

30-day SEC yield: 4.7%

Expense ratio: 0.10%

Pros: There’s low risk and short duration (under 2 years), it is great for parking cash while still earning a decent yield, and it has an extremely low expense ratio.

Cons: It carries a limited return potential during bull markets and is sensitive to rate cuts (yield could drop quickly).

The VUSB is best for conservative investors or anyone looking for a safe place to stash cash with monthly income.

BondBloxx CCC Rated USD High Yield Corporate Bond ETF (XCCC)

30-day SEC yield: 11.4%

Expense ratio: 0.40%

Pros: It is one of the highest-yielding bond ETFs on the market. It also has a diversified exposure to junk bonds, reduces single-default risk, and has been a top performer for two years straight.

Cons: It comes with a high credit risk. I mean it is a “junk” bond for a reason. XCCC is also more volatile than investment-grade alternatives.

The perfect use case is yield chasers who can stomach some risk.

Invesco Senior Loan ETF (BKLN)

30-day SEC yield: 7.6%

Expense ratio: 0.65%

Pros: Its floating-rate loans tend to hedge against rising interest rates.
BKLN is positioned higher in the capital structure (it is less risky than junk bonds), and you are sure of a monthly income stream.

Cons: You are doomed to pay higher fees compared to other ETFs, and below investment-grade borrowers can still default.

Investors who want high yield and some protection from rate hikes will benefit the most from this bond.