The sector allocations are diversified with financials at 46% of the fund, industrials at 42% and utilities at 11%. For an equity fund, that would be a lousy mix in terms of diversification, but debt issuance is heaviest in the financial sector. I would also note that the definition of industrial might be a little more liberal given that Glaxo is a drugmaker and AT&T is a telecom company. There are also bonds from Statoil ( STO), a Norwegian oil company. It should be clear that if the currencies perceived to be most at risk for debt downgrades, the euro and the pound, continue to decline against the U.S. dollar, the SPDR Barclays Capital International Corporate Bond ETF will struggle as well. In terms of decentralizing issuer risk, the fund seems like it is well put together. That allows investors who predict the euro is done declining to adjust their portfolios and pick up a little yield as well.