JEANNE MESERVE, CNN ANCHOR: It has not been a good year for stock funds. Gone are the 20 percent returns of years past, with the Nasdaq and Dow both in the red. But there is one group of mutual funds that's been doing well: bond funds. CNN's Jen Rogers takes a look.</s>JEN ROGERS, CNN CORRESPONDENT (voice-over): Boring bonds: the unsexy sibling of high-flying tech stocks. But this year, bonds are back.</s>MICHAEL RYAN, BOND ANALYST PAINEWEBBER: It's been really hard to focus on your bond portfolio when your stock portfolio has been up 30, 40 percent, especially the tech stocks, on an annual basis. I think what's happened now is now that we've seen some of the high-flying stocks come back to Earth, people are starting to recognize the importance of having a fixed-income allocation in their portfolio.</s>ROGERS: Leading the bond rally: treasuries. This year the 10- year note has returned double digits, while the Dow and the Nasdaq are in the red. Tagging along for the ride: bond mutual funds, having their best year since 1997.</s>ERIC JACOBSON, SENIOR ANALYST, MORNINGSTAR: This has been a great year for bonds. Interest rates went down a little bit for most of the year. The Treasury initiated some buybacks at the beginning of the year, and people have certainly perked up and taken notice.</s>ROGERS: Some of Jacobson's favorite bond plays: Harbor Bond and Vanguard Total Bond Market Index, both up more than 11 percent -- Dodge & Cox Income, Metropolitan West and FPA new income. No 20 percent returns here, but what these funds lack in power, they may make up for in safety. (on camera): A bad year for a bond fund usually means a loss of between 5 and 6 percent. For a stock fund, it can be many, many times that, as this year has proven so painfully for many. That's "Your Money," Jen Rogers, CNN Financial News, New York.
Bond Funds Offer Solid Growth in Bear Market