These ETFs Can Help Fight Interest-Rate Risk
None of the options is perfect, but there are several fixed-income ETFs for investors looking to manage the threat of rising rates.
It is difficult to successfully time market events such as movements in key interest rates—this is hardly a controversial statement. However, it is still prudent to manage risk.
Take interest-rate risk as an example. Unanticipated rate increases can hurt investors' fixed-income portfolios. Because such events are, by definition, unanticipated, they are nearly impossible to time.
Phillip Yoo does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.