However, INKM does offer some protection against rising interest rates. One of the ETF’s other fixed-income holdings is the SPDR Barclays Convertible Securities ETF (NYSEArca: CWB), worth noting because convertibles are usually among the best-performing bonds when rates rise. [Convertible Rate Protection]
Additionally, some of INKM’s common stock exposure comes by way of the Technology Select Sector SPDR (NYSEArca: XLK), the Health Care Select Sector SPDR (NYSEArca: XLV) and the Industrial Select Sector SPDR (NYSEArca: XLI). Those ETFs track some of the sectors that often respon the best to rising interest rates.
INKM has a dividend yield of 3.7% and charges 0.7% per year, according to State Street data.
SPDR SSgA Income Allocation ETF
Tom Lydon’s clients own shares of JNK.