Equally desirable, KXI's worst drawdown over the four-year bull market is approximately 15%... much less than the drawdown for a comparable benchmark like the iShares S&P 100 Global Index Fund (IOO).
3. Pimco 0-5 Year High Yield Corporate Bond (HYS). What if interest rates rise... won't that hurt high-yield bonds? Perhaps, but it is more likely to hurt the longer-end of the curve. What if the stock market crashes... don't high yield bonds tend to correlate more with stocks than bonds?
Yes, but this shorter-term high yield vehicle has 336 securities with an effective maturity of 2.9 years; its 5% distribution yield and monthly income stream is plenty of reward for the possibility of a modest price pullback.Follow @etfexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.