Despite the elevated volatility as a result of slowing economic growth and uncertainty over the Federal Reserve rate hike, investors may still find value in some fixed-income assets and related exchange traded funds.

For instance, Russ Koesterich, global chief investment strategist and head of the model portfolio & solutions business at BlackRock, still favors a portfolio tilted toward select credit, tax-exempt bonds and inflation protection through Treasury Inflation Protected Securities.

“We also maintain a preference for credit within fixed income,” Koesterich said. “Despite the equity market volatility, high yield has stabilized over the past week and yields remain attractive.”

For instance, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) has a 6.75% 30-day SEC yield and the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) has a 6.57% 30-day SEC yield. HYG has an effective duration of 4.13 years and JNK has a 4.3 year duration.

In contrast, 5-year Treasury bond yields are hovering around 1.55% and the benchmark 10-year yield is at about 2.23%.

Koesterich also mentioned that investment-grade corporate debt also looks cheap, but the strategist advises investors to hold off until later this fall due to the pending supply.

Investment-grade-rated debt issuers have halted sales in August as a response to the sudden spike in volatility and uncertainty over a potential September Federal Reserve rate hike, reports Cynthia Lin for the Wall Street Journal.

“To think August was supposed to have been a massive month, [the lull]suggests there’s an issuance wall waiting in the wings,” CRT Capital bond strategist David Ader told the WSJ.