Symbol: IBDC
Expense Ratio: 0.10%
Typically, we’d recommend a diversified, high-quality bond ETF as a core holding. But with interest rates likely to rise, we’re steering clear of funds that hold particularly rate-sensitive debt. This ETF holds intermediate-term corporate debt, which is less sensitive to rate hikes than Treasuries of comparable maturities. The twist is that the ETF holds no bonds that mature after March 31, 2020. The fund will close at that time and return remaining assets to shareholders. The current yield is 2.3%.
Article continues belowFrom just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
See Kiplinger ETF 20 at a Glance for the complete list of the best exchange-traded funds.
Visit Winning Model ETF Portfolios for five examples of how you can put ETFs to work.