Instead, Rosenbluth suggested looking into the SPDR Barclays Capital Short-Term High Yield Bond ETF (NYSEArca: SJNK) as it has a lower duration. SJNK has a 2.12 year duration and a 4.54% 30-day SEC yield. In comparison, the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) has a 4.32 year duration and a 5.21% 30-day SEC yield. [Short-Term Bond ETFs for Rising Rates]
For the more aggressive approach, investors can look at the ProShares 20+ Year Treasury ETF (NYSEArca: TBF), which produces the inverse daily performance of long-term Treasuries. The fund has gained 9.4% from July. Since it the fund rebalances daily, the ETF’s performance may not perfectly reflect the long-term inverse performance of the underlying index over a long period of time.
Timothy Evans, chief market strategist at Long Leaf Trading Group, also suggests the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP).
“When interest rates start to rise, the dollar usually gains momentum against other currencies because higher rates attract foreign capital to investment instruments that are denominated in dollars, such as T-bills, notes and bonds,” Evans said in the article. “Money chases yield and an influx in capital will be U.S. dollar friendly.”
For more information on fixed-income assets, visit our bond ETFs category.
Max Chen contributed to this article.