With the Federal Reserve signaling it will embark on interest rate normalization with more hikes to come, fixed-income investors can still maintain their attractive payouts without shifting down the yield curve through rate-hedged bond exchange traded funds.
Bond investors would usually move down the yield curve to hedge against rising interest rate risks as a lower duration bond fund would have a lower sensitivity to changes in interest rates.
For an actively managed fund, LQDH is attractively priced with an annual fee of 0.24%, or $24 on a $10,000 investment.
For more information on the fixed-income space, visit our bond ETFs category.