AMPS has an effective duration of 8.23 years and a SEC yield of 3.16%. The average credit rating is also BBB+.
ENGN has an effective duration of 7.08 years and a SEC yield of 2.87%, with an average credit rating of BBB+. The bond ETF acts more like an ex-financials corporate bond fund, including companies like AT&T (NYSE: T), Pepsico (NYSE: PEP), Oracle (NasdaqGS: ORCL), Caterpillar (NYSE: CAT) and Dow Chemical (NYSE: DOW).
Nusbaum notes that in a rising rates environment, these sector bond ETFs should not drop as much as long-term Treasury bonds or ETFs like TLT. However, the sector bonds will be more volatile than short-term bond ETFs like the iShares Barclays 1-3 Year Treasury Bond Fund (NYSEArca: SHY).
For more information on bond funds, visit our bond ETFs category.
Max Chen contributed to this article.