SNLN has a relatively high-yield coupled with protection from the looming rise in interest rates. The fund yields around 4.40% annually and charges 55 bps in fees.
TAPR offers investors positions against all five tenures on the U.S. Treasury futures curve and provides an interesting hedging strategy between short-term, intermediate-term and the long-term bonds.
What I find fascinating is that even with the recent pullback, the long bond has absolutely crushed the stock market in terms of performance over the past year or so and yet it continues to be scorned while stocks continue to be loved.
Many investors are definitely pulling their money out of the bond market. At a time like this when investors are extremely cautious about rising rate risks and stock market volatility, investments in U.S. bonds with significant protection against potential rising rates can be good bets.