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 Mar 22, 2019
Name Weight (%)
TREASURY NOTE 2.57
TREASURY NOTE 1.46
TREASURY NOTE 1.28
AMXCA_17-3 A 0.96
CVS HEALTH CORP 0.89
Name Weight (%)
ACTAVIS FUNDING SCS 0.82
GENERAL MOTORS FINANCIAL CO INC 0.81
SHIRE ACQUISITIONS INVESTMENTS IRE 0.81
COMET_17-A1 A1 0.8
DOWDUPONT INC 0.77
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 Mar 21, 2019
Name Weight (%)
BLACKROCK CASH CL INST SL AGENCY 3.19
TREASURY NOTE 2.02
TREASURY NOTE 1.57
TREASURY NOTE 1.2
TREASURY NOTE 1.16
Name Weight (%)
TREASURY NOTE 1.16
TREASURY NOTE 1.03
TREASURY NOTE 1.02
TREASURY NOTE 1.02
TREASURY NOTE 1.01
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 Feb 28, 2019
Name Weight (%)
UNITED STATES TREASURY 13.41
FEDERAL NATIONAL MORTGAGE ASSOCIATION 2.49
ISHARES ULTRASHORT DURATION BOND FUND 2.48
ITALY (REPUBLIC OF) 1.64
SHIRE ACQUISITIONS INVESTMENTS IRELAND DAC 1.3
Name Weight (%)
FORD MOTOR CREDIT COMPANY LLC 1.12
FORDL 2019-A-A2A 1.09
BANK OF AMERICA CORP 1.05
CITIZENS BANK NA/ PROVIDENCE RI 0.99
FEDERAL HOME LOAN MORTGAGE CORPORATION -GOLD 0.96
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 Feb 28, 2019
Name Weight (%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION 3.15
FEDERAL HOME LOAN MORTGAGE CORPORATION 2.94
UNITED STATES TREASURY 1.48
INDONESIA (REPUBLIC OF) 1.38
JAPAN (GOVERNMENT OF) 1.24
Name Weight (%)
ISHARES JPMORGAN USD EMERGING MARKETS BOND FUND 1.24
BANK OF AMERICA CORP 1.2
ISHARES IBOXX INVESTMENT GRADE CORPORATE BOND FUND 1.05
JPMORGAN CHASE & CO 1
MORGAN STANLEY 0.94