Navigate changing
interest rates

Rising interest rates can provide investors with opportunities to seek higher yield (i.e. income). But as interest rates rise, the value of bonds tends to fall, putting bond portfolios at risk. Investors should prepare their portfolios to be ready for rate changes.

  • Owning a short-duration or flexible bond strategy can help investors seek positive returns in all rate environments, regardless if rates are rising, falling or flat.
  • Exchange-traded funds (ETFs) can help investors manage interest rate risk in a cost-efficient manner.
  • Mutual funds seek to outperform while managing interest rate risk.

You should work with a financial advisor before making investment decisions.

01 NEAR
Seek to maximize short
term income
iShares Short Maturity Bond ETF
DESIGNED FOR Attractive income from short term bonds
SENSITIVE TO Minimally sensitive to changes in market
or government interest rates
Top Holdings as of Feb 19, 2019
Name Weight (%)
BLK CSH FND TREASURY SL AGENCY 2.63
TREASURY NOTE 1.83
TREASURY NOTE 1.32
AMXCA_17-3 A 0.99
CVS HEALTH CORP 0.91
Name Weight (%)
ACTAVIS FUNDING SCS 0.85
GENERAL MOTORS FINANCIAL CO INC 0.84
SHIRE ACQUISITIONS INVESTMENTS IRE 0.83
COMET_17-A1 A1 0.83
DOWDUPONT INC 0.8
02 ISTB
Stick to short term bonds iShares Core 1-5 Year USD Bond ETF
DESIGNED FOR Stability and income in the core of your portfolio
SENSITIVE TO Changes in government interest rates
Top Holdings as of Feb 19, 2019
Name Weight (%)
BLACKROCK CASH CL INST SL AGENCY 3.03
TREASURY NOTE 2.1
TREASURY NOTE 1.62
TREASURY NOTE 1.26
TREASURY NOTE 1.21
Name Weight (%)
TREASURY NOTE 1.13
TREASURY NOTE 1.08
TREASURY NOTE 1.07
TREASURY NOTE 1.06
TREASURY NOTE 1.05
03 BFMSX
Seek income with higher quality bonds Low Duration Bond Fund
DESIGNED FOR Managing interest rate volatility while seeking to generate income
SENSITIVE TO Broad U.S. and international bond market performance
TOP HOLDINGS as of Dec 31, 2018
Name Weight (%)
UNITED STATES TREASURY 11.89
FEDERAL NATIONAL MORTGAGE ASSOCIATION 4.6
ITALY (REPUBLIC OF) 1.95
SHIRE ACQUISITIONS INVESTMENTS IRELAND DAC 1.33
JPMORGAN CHASE & CO 1.26
Name Weight (%)
MORGAN STANLEY 1.24
BANK OF AMERICA CORP 1.08
ISHARES 1-3 YEAR CREDIT BOND ETF 1.08
FORD MOTOR CREDIT COMPANY LLC 1.03
FEDERAL HOME LOAN MORTGAGE CORPORATION -GOLD 1
04 BSIIX
Seek stability in your bond portfolio Strategic Income Opportunities Fund
DESIGNED FOR Seeking attractive returns to complement core bonds
SENSITIVE TO Domestic and global bond market
volatility
TOP HOLDINGS as of Jan 31, 2019
Name Weight (%)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II 4.18
FEDERAL HOME LOAN MORTGAGE CORPORATION 3.72
UNITED STATES TREASURY 3.39
FEDERAL NATIONAL MORTGAGE ASSOCIATION 2.13
GOLDMAN SACHS GROUP INC/THE 1.71
Name Weight (%)
JAPAN (GOVERNMENT OF) 1.53
ISHARES JPMORGAN USD EMERGING MARKETS BOND FUND 1.42
INDONESIA (REPUBLIC OF) 1.35
JPMORGAN CHASE & CO 1.11
BANK OF AMERICA CORP 1.1