Three ETFs offer safer bond alternatives after 2022's big losses in traditional bond funds.

In 2022, traditional aggregate bond funds like the iShares Core U.S. Aggregate Bond ETF lost about 12.4%, disappointing many retirees relying on them for safety. This loss was mainly due to duration risk as rising interest rates caused long-term bonds to drop in value. Three ETFs—WisdomTree Floating Rate Treasury Fund (USFR), Janus Henderson AAA CLO ETF (JAAA), and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)—offer better capital preservation by using floating rates or short maturities. These funds aim to protect investors from interest rate hikes and inflation, providing steadier income and less price volatility, making them suitable replacements for traditional bond funds in retirement portfolios.