The recently launched SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK) and iShares 0-5 Year High Yield Corporate Bond ETF (NYSEArca: SHYG) help provide investors with a high-yield option but helps limit rate risk with a shorter duration. Both ETFs have a duration of about 2.1 years. SJNK has a 3.43% 30-day SEC yield and SJNK has a 3.78% 30-day SEC yield.
The actively managed AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD) provides a 8.24% 30-day SEC yield and the fund has a duration of 2.89 years. [AdvisorShares High Yield ETF Lands 5-Star Rating From Morningstar]
More over, target-maturity ETFs are receiving more attention as the funds only hold bonds that mature in a set year and distribute cash back to investors upon maturity. With target-maturity bond ETFs, advisors can implement a type of bond ladder strategy that has evenly spaced out maturity dates to help minimize interest rate risk. For example, Guggenheim provides a suite of BulletShares Corporate and High-Yield Corporate Bond ETFs with target-dates ranging between 2014 to 2022. [ETFs Help Investors Navigate Changing Fixed-Income Landscape]
Financial advisors interested in attending the annual virtual summit on January 15 can register at ETF Virtual Summit registration.