Related: Fixed-Income ETF Strategies for Rising Interest Rates
While safe havens, such as government and municipal bonds may be deemed as less riskier than corporate bonds during a recession, an investor does not have to abstain from them completely to still extract the benefits of higher-yielding debt issues.
LQD has a 30-day SEC yield of 4.09%. The ETF charges 0.15% per year, or $15 on a $10,000 investment.
For more information on corporate debt, visit our corporate bonds category.
Tom Lydon’s clients own shares of LQD.