Four Fixed-Income Funds to Add to Your Portfolio

There is not enough coverage given to the fixed-income portion of a diversified portfolio, so this seems as good a time as any to do a checkup.

The bond market is currently working through a huge distortion, wherein Treasury yields are so low that Bill Gross has called them the most overpriced market on the planet; municipal bonds yield more than Treasurys (this should not be because of the tax-advantaged nature of munis) and the spread in yields between Treasurys and lower quality paper have been extremely volatile.

While I don't think a fully invested position is ideal right now, there are some parts of the bond market that can offer some decent value and reasonable yields.

Vanguard GNMA Fund(VFIIX Quote) ...