My investments are split between 4 ETFs (US, International, REIT, and bonds). Until recently, bonds were a relatively small part of the portfolio so I didn't put much thought into it and selected a popular iShares bond ETF (AGG).
Now, bonds are the largest of the 4 ETFs, with about 40% of holdings. In addition, I need to hold bonds in taxable accounts because I've run out of room in tax-advantaged accounts.
The purpose of bonds is to reduce volatility, but now I have tax considerations, and as it becomes a larger part of my portfolio it seems I should at least consider yield.
What criteria should I consider in selecting one or possible more bond ETFs for this largest chunk of my portfolio?
For example, I could consider iShares LQD (corporate bonds) to increase yield or iShares MUB (muni) to avoid taxes. In addition, Fidelity is pushing an actively managed bond fund, claiming that active management is more successful with bonds than with stocks.
While there are plenty of guidelines for selecting stock ETFs it is hard to find good info for bond ETFs.