Rate-hedged bond funds excellent in the fourth quarter. But are they a good long-term bet?
**Would you be interested in an investment grade bond fund that made money during the first quarter?
Of course you would. The first three months of this year were not kind to U.S. corporate bonds, to say the least: They suffered their second-worst quarterly loss in history, in fact. Bond investors ran for the hills in March, with the iShares iBoxx Investment Grade Corporate Bond ETF LQD, -0.68% —one of the largest ETFs benchmarked to this sector—suffering its worst monthly outflow on record.***