Nontraditional Bond ETFs and funds use flexible fixed-income mandates that may vary duration, credit exposure, currencies, derivatives, and long or short positioning. They seek returns less constrained by conventional bond indexes but can introduce leverage, liquidity, credit, and model risk.

Nontraditional Bonds

Under normal circumstances, the fund invests at least 80% of its net assets in catastrophe bonds, which are structured securities that transfer risks related to severe events such as natural disasters from insurers or reinsurers to capital market investors.

NYSEArca

KNRG

AGZD is an ETF that seeks to track the Bloomberg Rate Hedged U.S. Aggregate Bond Index, Zero Duration, combining investment-grade bonds with short positions in U.S. Treasury securities to target zero interest rate exposure while capturing credit spreads.

NasdaqGM

AGZD

DoubleLine Asset-Backed Securities ETF is an actively managed fixed income ETF focused on investment-grade asset-backed securities. The fund seeks long-term total return while striving to generate current income through exposure to consumer and commercial asset-backed finance markets.

DABS

The ETF aims to achieve total return through income and capital appreciation while providing tax-efficient monthly income. It invests in High-Yield and Investment Grade Securities using a proprietary quantitative model, coupled with a data-driven put option strategy, primarily via other ETFs focused on debt securities.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
ILS	Brookmont Catastrophic Bond ETF	3.11	—	—	97
KNRG	Simplify Kayne Anderson Energy and Infrastructure ...	2.36	—	—	84
AGZD	WisdomTree Interest Rate Hedged U.S. Aggregate Bon...	2.06	1.24	0.90	88
DABS	DoubleLine Asset-Backed Securities ETF	1.76	—	—	74
HYBI	NEOS Enhanced Income Credit Select ETF	1.73	—	—	76

Top Nontraditional Bonds ETFs by Sharpe Ratio

Top Nontraditional Bonds ETFs by Sharpe Ratio