A. The answer is it depends on your strategy, either ETFs or Mutual Funds could work.
For ETFs, certain types of index funds might pose significant rate risk because they closely track the benchmark Barclays Aggregate Index, and this index includes a large portion of high-quality, rate-sensitive bonds, such as U.S. Treasuries. But ETFs that own larger portions of lower-rated bonds, such as U.S. high-yield (or junk) securities, would be less sensitive to broad moves in rates.
Managed bond funds typically do things to damp rate risk, such as owning shorter maturities or using derivatives to hedge against rate moves.
The bottom line? You could find either bond ETFs or bond funds that give you exposure to bonds and with less interest rate risks.