Short-Duration Bond ETFs to Mitigate Potential Volatility | Page 2 of 2 | ETF Trends

For short-term investment-grade corporate debt exposure, the iShares 1-3 Year Credit Bond ETF (NYSEArca: CSJ) has a 1.85 year duration and a 1.09% 30-day SEC yield, Vanguard Short-Term Corporate Bond Index (NYSEArca: VCSH) has a 2.8 duration and a 1.72% 30-day SEC yield, and SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB) has a 1.88 year duration and a 1.34% 30-day SEC yield.

Investors can also track short-term high-yield corporate bonds through the SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK), which has a 2.45 year duration and a 5.98% 30-day SEC yield, iShares 0-5 Year High Yield Corporate Bond ETF (NYSEArca: SHYG), which has a 2.41 year duration and a 5.62% 30-day SEC yield, and PIMCO 0-5 Year High Yield Corporate Bond Index (NYSEArca: HYS), which has a 1.97 year duration and a 4.87% 30-day SEC yield.

Additionally, there are a number of short-term municipal bond ETFs available, including the SPDR Nuveen Barclays Short Term Municipal Bond ETF (NYSEArca: SHM), which has a 2.92 year duration and a 0.7% 30-day SEC yield, Market Vectors-Short Municipal ETF (NYSEArca: SMB), which has a 3.13 year duration and a 1.0% 30-day SEC yield, and iShares Short Term National AMT-Free Muni Bond ETF (NYSEArca: SUB), which has a 2.03 year duration and a 0.42% 30-day SEC yield.

The yield and bond’s price have an inverse relationship, so bond funds with long durations would experience large price drops if rates were to rise. In contrast, short-duration bond funds will experience more muted volatility in case of sudden rate changes.

For more information on the fixed-income market, visit our bond ETFs category.

Max Chen contributed to this article.