With fixed income investors scrambling to reduce interest rate risk, some short-term bond funds are receiving renewed attention. Among high-yield ETFs, that conversation should include the SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK).

The $3.58 billion SJNK debuted over six years ago and follows the Bloomberg Barclays US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index. SJNK is an alternative to consider if rates rise because SJNK offers income investors a lower duration avenue to high-yield corporates without a significant sacrifice in terms of yield.

SJNK “seeks to provide diversified exposure to short-term US dollar-denominated high yield corporate bonds and potentially presents less interest rate risk than high yield bonds with longer duration,” according to State Street Global Advisors (SSgA).

Important SJNK Details

SJNK is the shorter term equivalent of the popular SPDR Blmbg Barclays High Yield Bd ETF (NYSEArca: JNK), the second-largest high-yield bond ETF by assets.

In a rising interest rate environment, JNK can cushion the impact should the Federal Reserve continue to be hawkish on the economy if the latest data warrants more short-term interest rate spikes. In addition, a growing economy could signal less default rates for company debt included in the Bloomberg Barclays VLI.

Related: An ETF of ETFs to Trim Interest Rate Risk