7 Top-Performing Intermediate Core-Plus Bond Funds

For investors seeking higher yields than what intermediate core bonds can provide, the next step up the risk ladder are funds in the Morningstar intermediate core-plus bond category.

To screen for the top-performing funds in this group, we looked for those with the best returns over the last one-, three-, and five-year periods. All names that passed the screen are actively managed. These seven funds are investor’s best options for intermediate core-plus bond funds, according to Morningstar analysts:

• Calvert Income Fund CINCX
• Dodge & Cox Income Fund DODIX
• Eaton Vance Total Return Bond ETF EVTR
• JPMorgan Core Plus Bond ETF JCPB
• MFS Income Fund MFIWX
• Victory Core Plus Intermediate Bond Fund URIBX
• Victory Pioneer Bond Fund PBFKX

Over the last 12 months, the intermediate core-plus bond category returned 5.59%. These funds have returned 4.84% over the last three years annualized and 0.36% over the last five years annualized. That compares with the Morningstar US Core Bond Index, which has returned 5.33% over the last 12 months, gained 3.98% per year over the last three years, and lost 0.32% per year over the last five years.

Screening for the Top-Performing Intermediate Core-Plus Bond Funds

Intermediate-term core-plus bond portfolios invest primarily in investment-grade US fixed-income issues, including government, corporate, and securitized debt. They generally have greater flexibility than core bond funds to hold non-core sectors, such as corporate high yield, bank loan, emerging-markets debt, and non-US currency exposures. These funds’ durations (a measure of interest rate sensitivity) typically range at 75%-125% of the three-year average of the effective duration of the Core Bond Index.

We looked at returns from the past one, three, and five years using data in Morningstar Direct. We screened for open-ended and exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We also filtered for funds with Morningstar Medalist Ratings of Bronze, Silver, or Gold. We excluded funds with assets under $100 million and analyst coverage that was not 100%. This left seven names.

Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors outside of retirement plans, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. In addition, Medalist Ratings may differ among the share classes of a fund.

Calvert Income Fund

• Share Class: Calvert Income I CINCX
• Morningstar Medalist Rating: Bronze
• Morningstar Rating: ★★★★★

This $1.3 billion fund has climbed 7.48% over the past 12 months, outperforming the average fund in its category, which rose 5.59%. The fund, launched in February 1999, has climbed 6.88% over the past three years and 1.62% over the past five.

Calvert Income’s August 2025 shift to the intermediate core-plus bond Morningstar Category from the corporate-bond peer group has the potential to obscure as much as it clarifies. This strategy isn’t a perfect fit for either. It retains a stronger corporate credit focus than most core-plus rivals, but its increased allocations to noncorporate sectors in recent years—particularly government mortgage-backed securities and asset-backed securities—make the new classification more appropriate. Importantly, the process itself hasn’t changed: The portfolio remains geared toward generating income, and corporate credit is often the most natural place to find it.

The fund’s approach incorporates a commitment to environmental, social, and governance factors, offering a compelling choice for income-seeking investors. The ESG filters limit exposure to sectors such as energy, and thus, should count as a negative—any restriction on the investment universe cannot but weaken a fund’s risk-return potential—but this has not hindered the fund’s performance. The investment process itself is a pragmatic balancing of income generation with risk management: Credit selection, sector rotation, and adjusting credit risk are the main tools. The managers’ ability to make sensible, somewhat contrarian, investments, as well as good security selection, has been the key driver of success.

Run by a team drawing from Calvert, Eaton Vance, and Morgan Stanley, the fund applies a thoughtful approach to credit selection, sector rotation, and ESG integration. The fund’s team and process have been strengthened following the integration of Calvert’s fixed-income team, with first Eaton Vance and then Morgan Stanley’s global resources. This has brought greater research depth, especially in areas like high-yield and bank-loan analysis. Despite some senior-level personnel turnover at Morgan Stanley’s fixed-income division, Vishal Khanduja and Brian Ellis have provided consistent leadership. The independent Calvert ESG team continues to play a key role in ensuring that the fund’s ESG-focused strategy is effectively implemented.

Over Khanduja’s decade-plus tenure, the fund has delivered top-quartile results. Even if performance was challenging during periods of credit market distress, such as 2018’s fourth quarter or the covid meltdown, the fund’s risk profile in its new intermediate core-plus bond category appears somewhat elevated relative to the median peer, though not to an alarming degree, making it a reasonable option for investors seeking moderate income with a modest tilt toward credit risk.

Dodge & Cox Income Fund

• Share Class: Dodge & Cox Income I DODIX
• Morningstar Medalist Rating: Gold
• Morningstar Rating: ★★★★★

This $103 billion fund has gained 6.07% over the past 12 months, while the average fund in its category is up 5.59%. The fund, launched in January 1989, has climbed 5.47% over the past three years and 1.17% over the past five.

Dodge & Cox Income’s adept investment team and robust investment approach make it tough to beat.

This strategy’s success owes to the investment acumen of its eight managers, who average more than two decades of experience. Dana Emery, CEO, chair of the firm’s board, and a member of this fund’s investment committee, will retire at the end of 2025 after more than four decades at Dodge & Cox. Her departure has been prepared for by an orderly handoff of duties, including the promotion of global bond specialist José Ursua as a portfolio manager here earlier in 2025. This change is the second retirement in two years, but the investment committee’s depth and abundance of talent mean it can handle the adjustments.

The fund’s patient and at times contrarian approach to investing isn’t changing. Historically, its managers have often favored corporates, noting that the yield advantage these securities offer is an important contributor to total returns over time. But this approach remains anchored on valuations, which has led to large adjustments to its corporate credit stake over time. For instance, the team was quick to ramp up corporate credit exposure during the first-quarter 2020 selloff and did the same amid 2022’s rocky first half. But it saw fewer opportunities for taking credit market risk recently and reduced the portfolio’s corporate bond allocation to 30% of assets as of June 2025, at the low end of its historical range. At the same time, it increased its Treasuries allocation to 15% of assets and securitized debt, primarily agency mortgage-backed securities, to 50%; these are typically used as dry powder, so their weighting in the portfolio is inversely correlated to corporate valuations. And while this portfolio had been historically lighter on interest rate risk than its benchmark, its managers have gradually increased duration in recent months (to 6.3 years versus 6.1 for the Bloomberg US Aggregate Bond Index as of mid-2025), in keeping with the portfolio’s conservative tilt.

While the strategy’s current makeup is uncharacteristically defensive, the tilt toward corporates has often made it more sensitive than most peers to credit market swings, as did its longtime shorter duration stance. However, the team has demonstrated strong security-selection skills, and its knack for exploiting market corrections has served investors well: The I share class’ 3.1% 10-year annualized gain through August 2025 topped 89% of distinct peers.

The strategy’s growth in assets under management over the past two years is notable. While we don’t believe capacity issues are imminent, we are keeping a close eye on its girth to make sure it stays as nimble as it has been in the past.

Eaton Vance Total Return Bond ETF

Over the past 12 months, this fund rose 6.51%, while the average fund in its category rose 5.59%. The fund, launched in November 1984, has climbed 5.85% over the past three years and 0.78% over the past five.

Eaton Vance converted the mutual fund to an exchange-traded fund in March 2024 from its open-end incarnation when it was known as Morgan Stanley Institutional Core Plus Fixed Income. The conversion proved commercially successful: The new vehicle more than doubled the assets of the old fund in less than a year, reaching USD 1.36 billion by the end of January 2025.

The same team that oversees other offerings under Morgan Stanley, Eaton Vance, or Calvert brands manages this active ETF. This diverse branding structure stems from Morgan Stanley’s acquisition of Eaton Vance, which had previously acquired Calvert. While this multibrand approach may evolve over time, the Calvert brand will likely maintain its distinctive environmental, social, and governance focus. Lead managers Vishal Khanduja and Brian Ellis leverage the firm’s considerable resources, particularly in credit research. Khanduja, who originally came from Calvert, now heads Morgan Stanley’s fixed-income broad markets team, which directs investment decisions across multiple sectors including credit, structured products, and mortgage-backed securities. Khanduja and Ellis (also formerly from Calvert) have nearly two decades of industry experience each. Matthew Dunning, a Morgan Stanley veteran on the investment side, supports the comanagers. Brandon Matsui, though listed as a comanager, primarily oversees the operational aspects of running the ETF with his dedicated implementation team.

The fund operates within specific investment parameters: no more than 20% of assets in below-investment-grade securities, 20% in emerging-markets debt, 10% in non-US-dollar-denominated bonds, and a maximum of 35% in nonagency MBS. Beyond these constraints, the investment process follows a well-established approach for broad fixed-income market exposure that has proved successful across the team’s other managed vehicles. Their methodology combines a six- to 12-month macroeconomic outlook with relative-value analysis to determine sector allocations, while specialized sector teams handle individual security-selection decisions.

The fund’s relatively low 31-basis-point expense ratio enhances its appeal as an attractive vehicle for investors seeking broad, diversified fixed-income exposure and active management.

JPMorgan Core Plus Bond ETF

This $8.8 billion fund has climbed 6.13% over the past 12 months, outperforming the average fund in its category, which rose 5.59%. The fund, launched in January 2019, has climbed 5.30% over the past three years and 0.80% over the past five.

JPMorgan Core Plus Bond’s managers effectively leverage the firm’s well-resourced global fixed-income platform to drive consistently strong decisions. Increased conviction in their inputs supporting portfolio decisions earns a Process upgrade to High from Above Average.

This review covers three vehicles, including a mutual fund (the oldest version to which this report applies), JPMorgan Core Plus ETF JCPB, and a collective investment trust.

A robust, proven investment process expertly combines top-down views with meticulous security selection, driving the strategy’s Process upgrade. The approach focuses on fundamental, quantitative, and technical factors and starts with JPMorgan’s quarterly investment meeting, which establishes strategic macro themes. while weekly sector meetings concentrate on relative value and tactical positioning. Through robust debate, the lead managers effectively synthesize these insights to guide overall risk, duration, and curve positioning, and sector allocation. They collaborate closely with sector-focused comanagers who execute bottom-up security selection.

The managers skillfully balance characteristics of an intermediate core-bond fund with measured risk-taking in off-benchmark stakes. Various securitized debt types feature prominently, comprising 35% to 50% of assets. Instead of plain-vanilla mortgage pass-throughs, the portfolio features mortgage-backed securities pools and collateralized mortgage obligations, which meet stringent standards that protect against prepayment risk and limit duration extension. High-yield credit represents the largest non-investment-grade allocation, and the team adjusts these stakes based on its risk outlook. For example, a cautious macro view and rich valuations led the managers to trim high-yield exposure while adding to investment-grade corporates. Duration (a measure of interest rate sensitivity) normally stays within 10% of that of its benchmark.

JPMorgan’s US Fixed-Income Chief Investment Officer Key Herr leads this effort alongside multisector fixed-income veteran Andrew Norelli and relative newcomer Priya Misra. This lead trio is surrounded by proven investment talent, which includes four other comanagers with extensive experience across its vast investment platform. Rick Figuly manages the portfolio’s securitized sleeve, while Lisa Coleman and Tom Hauser oversee the investment-grade and high-yield credit sleeves, respectively. In April 2025, Coleman announced her retirement effective early 2026; in response, JPMorgan added Vikas Pathani, a high-grade corporate-bond manager who joined the firm in 2004, to the fund. The firm’s well-resourced global fixed-income platform and its network of specialists help guide macro positioning and contribute to bottom-up ideas.

The strategy touts compelling long-term results. Since Norelli’s March 2014 start (as the longest-tenured nonsleeve manager), the mutual fund’s R6 shares’ 2.6% annualized return through August 2025 beat the Bloomberg US Aggregate Bond Index’s 1.9% and the intermediate core-plus Morningstar Category peer median’s 2.4%. The fund’s yield advantage and solid security selection fueled its trailing 12-month 4.1% return through August 2025, better than nearly three-quarters of rivals.

MFS Income Fund

This $7.7 billion fund has climbed 5.77% over the past 12 months, performing roughly in line with the average fund in its category, which rose 5.59%. The fund, launched in March 2018, has climbed 5.46% over the past three years and 0.88% over the past five.

Victory Core Plus Intermediate Bond Fund

• Share Class: Victory Core Plus Intermediate Bond R6 URIBX
• Morningstar Medalist Rating: Bronze
• Morningstar Rating: ★★★★

Over the past 12 months, this fund rose 5.95%, while the average fund in its category rose 5.59%. The fund, launched in December 2016, has climbed 5.46% over the past three years and 1.31% over the past five.

Victory Core Plus Intermediate Bond team’s thoughtful approach to credit and risk management warrants a Process Pillar upgrade to Above Average from Average.

This analysis is specific to the Victory Core Plus Intermediate Bond mutual fund, but it also encompasses the Victory Core Plus Fixed Income separate account and the Victory Core Plus Intermediate Bond collective trust, which use the same team, process, and portfolio construction.

A key driver of this improved Process rating is a more effective risk management framework since 2019, providing better downside protection than many intermediate core-plus Morningstar Category peers. The fund historically leans on lower-rated investment-grade debt versus the peer median, leveraging research depth to perform in risk-on markets but lag in risk-off periods. While the team still takes more credit risk than the Bloomberg US Aggregate Bond Index, it now manages this exposure within limits by buying bonds when spreads are attractive and balancing exposures to mitigate downside. This approach has supported the fund’s resilience in recent years, including the most recent April 2025 tariff-driven selloff.

The management group, led by Kurt Daum, consistently makes strong decisions within its relative value framework. Bottom-up security selection helps managers find incremental yield and nimbly adjust allocations across securitized and corporate debt. They lean on government debt, including agency mortgage-backed securities and Treasuries, when spreads are tight, cap corporates at 1% per issuer, and limit securitized debt rated BBB or lower to about 10%. The managers avoid large interest rate bets by keeping the portfolio’s duration close to that of the index’s.

Experience and effective collaboration define the management team. Daum is part of the four-member group with Jim Jackson, Neal Graves, and Brian Smith, whose long tenures at Victory Capital, many predating the 2019 USAA acquisition, have fostered strong teamwork over time. Manager John Spear, the firm’s co-CIO, retired in December 2024 after gradually stepping back. The firm prepared for this transition well in advance by naming Jackson co-CIO in 2023.

A sizable, stable, and experienced supporting team works closely with the managers, though some areas remain thin. While the managers set overall risk levels, a team of 14 taxable analysts provides fundamental and valuation recommendations. Experience across this team is solid, but a three-person securitized team lacks depth in MBS versus higher-rated peers.

The fund’s strong long-term absolute and risk-adjusted results have consistently outpaced its peers. Over Daum’s tenure since December 2016 (his first full month), the institutional share class’ 3.2% annualized gain through August 2025 ranked in the top decile within the category. Though the fund could provide a bumpier ride in credit stress periods because of higher exposures in lower-rated credit, the fund’s resilience has helped in the long run.

Victory Pioneer Bond Fund

• Share Class: Victory Pioneer Bond R6 PBFKX
• Morningstar Medalist Rating: Silver
• Morningstar Rating: ★★★★

Over the past 12 months, this fund rose 6.98%, while the average fund in its category rose 5.59%. The fund, launched in December 2012, has climbed 5.65% over the past three years and 0.99% over the past five.

Victory Pioneer Bond’s seasoned leadership team has successfully navigated through market cycles by executing a disciplined, relative-value approach over the long haul.

Lead manager Ken Taubes has guided this portfolio since 1999, drawing support from experienced comanagers and Pioneer’s robust resources. The firm strengthened the manager bench over time, adding Brad Komenda, who brings more than 25 years of industry experience, and Tim Rowe, a securitized veteran, in 2018. In 2021, the firm named Jonathan Scott, director of multi-sector fixed income, and completed the current roster. Turnover within the analyst ranks poses a potential challenge, but the research teams remain large and experienced. The managers tap into a 14-person corporate credit team, a six-person securitized group, and a five-person insurance-linked securities team for portfolio construction guidance. While Victory Capital’s May 2025 purchase of Pioneer also warrants monitoring, the strategy continues to benefit from experienced and stable managers and deep supporting resources.

The managers adhere to a disciplined, relative value approach that has proved effective across market cycles. The team integrates top-down macroeconomic views with the sector specialists’ bottom-up insights to inform portfolio positioning and scale back credit risk when valuations appear stretched. Regular collaboration with the Pioneer’s broader fixed-income platform and sector experts ensures the managers maintain discipline, consistency, and responsiveness during evolving market conditions.

The team invests at least 80% of assets in investment-grade securities and adds exposure to high-yield corporates, bank loans, and insurance-linked securities when valuations are favorable. They typically keep duration within 1.5 years of the Bloomberg US Aggregate Bond Index while seeking annualized excess returns of 1.0%–1.5%. As of June 2025, the portfolio’s below-investment-grade stake edged up to 9% from 8% a year earlier, but remained in line with the 8.6% peer median allocation.

The consistent approach has yielded strong long-term performance. Over the trailing 10-year period through September 2025, the Y shares’ 2.8% annualized return exceeded over 70% of its intermediate core-plus bond Morningstar Category competitors. On a risk-adjusted basis, performance also appeared compelling. The fund’s Sharpe ratio, which measures volatility-adjusted returns, outperformed more than 70% of its peers over the same timeframe. Overall, this strategy remains a strong choice for investors.