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 Jun 4, 2020
Name Weight (%)
BLK CSH FND TREASURY SL AGENCY 5.63
USD CASH 1.76
CHARTER COMMUNICATIONS OPERATING L 1.19
SHIRE ACQUISITIONS INVESTMENTS IRE 1.07
SANTANDER UK GROUP HOLDINGS PLC 0.96
Name Weight (%)
CIGNA CORP 0.93
FORD MOTOR CREDIT COMPANY LLC 0.91
FORDF_19-3 A2 0.88
GE CAPITAL INTERNATIONAL FUNDING C 0.82
CHARTER COMMUNICATIONS OPERATING L 0.76
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 Jun 4, 2020
Name Weight (%)
TREASURY NOTE 3.48
BLACKROCK CASH CL INST SL AGENCY 2.96
UMBS 15YR TBA(REG B) 1.76
TREASURY NOTE 1.6
TREASURY NOTE 1.47
Name Weight (%)
TREASURY NOTE 1.06
TREASURY NOTE 1.02
TREASURY NOTE 0.95
TREASURY NOTE 0.92
TREASURY NOTE 0.91
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 Apr 30, 2020
Name Weight (%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION 5.39
UNITED STATES TREASURY 3.51
ISHARES ULTRASHORT DURATION BOND FUND 2.32
FEDERAL HOME LOAN MORTGAGE CORPORATION 2.23
BANK OF AMERICA CORP 2.07
Name Weight (%)
JPMORGAN CHASE & CO 1.31
ORACLE CORPORATION 1.03
CVS HEALTH CORP 1.01
ALTRIA GROUP INC 0.91
NXP BV 0.84
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 Apr 30, 2020
Name Weight (%)
UNITED STATES TREASURY 13.97
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II 3.72
UNIFORM MBS 1.69
CHINA PEOPLES REPUBLIC OF (GOVERNMENT) 1.28
INDIA (REPUBLIC OF) 1.26
Name Weight (%)
INVESCO QQQ TRUST SERIES 1 0.89
ITALY (REPUBLIC OF) 0.86
INDONESIA (REPUBLIC OF) 0.86
JAPAN (GOVERNMENT OF) 0.8
RUSSIAN FEDERATION 0.76