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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 Jan 17, 2020
Name Weight (%)
BLK CSH FND TREASURY SL AGENCY 7.76
CHARTER COMMUNICATIONS OPERATING L 1.51
ACTAVIS FUNDING SCS 1.47
CVS HEALTH CORP 1.35
MEXICO (UNITED MEXICAN STATES) (GO 1.16
Name Weight (%)
MEXICO (UNITED MEXICAN STATES) (GO 1
ABBVIE INC 0.96
FORD MOTOR CREDIT COMPANY LLC 0.92
FORDF_19-3 A2 0.91
FORDR_19-C A2B 0.86
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 Jan 17, 2020
Name Weight (%)
TREASURY NOTE 3.63
BLACKROCK CASH CL INST SL AGENCY 2.16
TREASURY NOTE 1.67
TREASURY NOTE 1.48
UMBS 15YR TBA(REG B) 1.29
Name Weight (%)
TREASURY NOTE 1.07
TREASURY NOTE 1.04
TREASURY NOTE 1.03
TREASURY NOTE 0.96
TREASURY NOTE 0.93
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, 2019
Name Weight (%)
UNITED STATES TREASURY 5.89
FEDERAL NATIONAL MORTGAGE ASSOCIATION 5.67
UNIFORM MBS 5.19
FEDERAL HOME LOAN MORTGAGE CORPORATION 3.58
ISHARES ULTRASHORT DURATION BOND FUND 2.09
Name Weight (%)
BANK OF AMERICA CORP 1.03
ENERGY TRANSFER OPERATING LP 0.93
ALLERGAN FUNDING SCS 0.87
JPMORGAN CHASE BANK NA 0.84
FORD MOTOR CREDIT COMPANY LLC 0.82
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 Dec 31, 2019
Name Weight (%)
UNIFORM MBS 42.63
UNITED STATES TREASURY 7.91
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II 4.44
INDONESIA (REPUBLIC OF) 1.98
FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.89
Name Weight (%)
INVESCO QQQ TRUST SERIES 1 1.47
CHINA PEOPLES REPUBLIC OF (GOVERNMENT) 1.24
INDIA (REPUBLIC OF) 1.16
RUSSIAN FEDERATION 1.06
ITALY (REPUBLIC OF) 0.91