Investors should also complement existing credit positions in high-yield and investment-grade credit with alternatives like bank loans that access floating rate, move up the capital structure and shortens duration exposure.

For example, the actively managed SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN) could provide investors with better exposure as a manager is more freely able to weave in and out of the fixed-income market. Blackstone/GSO, which subadvises SRLN, is backed by one of the largest senior loan asset managers in the world.

Lastly, floating rate investment-grade corporate bonds may provide short duration, greater quality exposure and still capture yields, all things that do well when rates go up help cushion a portfolio. For instance, the SPDR Barclays Investment Grade Floating Rate (NYSEArca: FLRN) tracks investment-grade bonds with a floating rate component, which automatically adjust at periodic intervals in response to changes in the interest rates.

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