Additionally, investors can expand on the aggregate bond portfolio with below investment-grade debt and floating rate exposure to potentially increase yield while lowering the portfolio’s overall duration.
For example, the SPDR Barclays Investment Grade Floating Rate ETF (NYSEArca: FLRN) tracks investment-grade quality corporate debt that adjusts or floats its interest rate in response to the rest of the market. The SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN) also floats its rate but includes speculative-grade debt holdings. The SPDR Barclays Short Term High Yield Bond ETF (NSYEArca: SJNK) tracks junk bonds with a focus on short duration. The SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB) tracks investment-grade corporate debt with shorter durations.
FLRN has a duration of 0.13 years and a 0.65% 30-day SEC yield. SRLN adjusts its floating rate component every 30 days and has a 4.51% 30-day SEC yield. SJNK has a 2.35 year duration and a 6.48% 30-day SEC yield. Lastly, SCPB has a 5.73 year duration and a 1.69% 30-day SEC yield.
Financial advisors who are interested in learning more about the fixed-income market can register for the Thursday, September 17 webcast here.