The ETF Income Conundrum: Balancing Yield and Risk | Page 2 of 2 | ETF Trends

FLTR shows a 0.10 year duration, which roughly translates to a 0.10% decline if interest rates were to rise 1%. The ETF also has a 0.65% 30-day SEC yield.

Additionally, the Market Vectors Treasury-Hedged High Yield Bond ETF (NYSEArca: THHY) provides another option to access high-yield, junk bonds while hedging against rising rates. Specifically, the fund’s underlying index employs a type of long/short strategy where it will go long junk bonds and short 5-year Treasury bonds to hedge against adverse movements in interest rates. THHY shows a 0.29 year duration and a 5.12% 30-day SEC yield. [Long/Short Bond ETFs to Hedge Rate Risk, Generate Yields]

Additionally, investors could move down the yield curve and target more short-term bonds to remain in the fixed-income game. For instance, the FlexShares Disciplined Duration MBS Index Fund (NasdaqGM: MBSD), with a 2.94 year duration and a 2.38% 30-day SEC yield, tracks mortgage-backed securities with a disciplined duration approach. The FlexShares Credit‐Scored US Corporate Bond Index Fund (NasdaqGM: SKOR), which has a 4.66 year duration and a 2.37% yield, focuses on investment-grade corporate bonds with middle maturities ranging from two to 10 years.

Advisors interested in attending the upcoming ETF Virtual Summit on Wednesday, January 21 can register here.