Additionally, the more recently launched the Principal Investment Grade Corporate Active ETF (NYSEArca: IG) tries to provide current income and capital appreciation by investing in investment-grade corporate bonds rated BBB- or higher by S&P Global Ratings or Baa3 or higher by Moody’s Investors Service.
“You get to pick the business models that do better in a rising rate environment, business models that do better where yield curve is starting to move,” Kim said.
Additionally, the Principal Spectrum Preferred Securities Active ETF (BATS: PREF) provides exposure to current income through preferred securities.
“Preferreds have a lot of embedded sort of protection against rising rates, better duration exposure or lower duration,” Kim added.
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