3 Bond Funds to Buy for Yield and Stability PGIM Total Return Bond A ( PDBAX ): Bond funds offer both yield and stability Vanguard Long Term Investment Graded Fund ( VWESX ) is no exception. During the current downturn, bond prices have been following stock prices down iShares Floating Rate Bond ETF ( FLOT ) offers more safety than other bond funds. If inflation has peaked, bonds will look like a great deal Source: J.J. Gouin | Shutterstock.com Many small investors own no bonds. We think of markets, and our portfolios, solely in terms of common stock. That’s a mistake. When interest rates are rising, it’s safer to lend your money than to put it in a company’s stock. Bonds offer safe yields. When interest rates are falling, bonds offer capital gains. You may feel put off by “falling” bond prices. When interest rates rise, the price of bonds from even the best creditors fall . If you see hyper-inflation ahead, buying bonds looks silly . Over the last year, as interest rates have risen, the total return on most bond funds has been negative.