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.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.