A rise in yields is likely to benefit a few corners of the market. Investors seeking to capitalize on the opportune moment should consider these ETFs.

FLOT offers a conservative risk/reward profile with a 4.77% 30-day SEC yield and investment-grade exposure. Its short duration of 0.02 years and exposure to highly liquid, investment-grade corporate bonds make it a better risk management tool than T-Bills. The ETF benefits from rising interest rates, with significant exposure to multilateral development banks, reducing credit risk and enhancing liquidity.

A rise in Treasury yields is likely to benefit a few corners of the stock and bond market.

FLOT's floating rate bonds excel in rising interest rate environments but underperform in easing conditions, prompting a shift from 'Buy' to 'Hold'. The ETF's higher default risk and tight credit spreads make it less appealing compared to short-term bond funds like TBUX. FLOT offers a low 30-day SEC yield of 5.15%, with minimal spread over treasuries and short-term bond funds, reducing its attractiveness.

Long-term U.S. treasury yields have been on the uptrend lately. Benchmark U.S. Treasury yields were 4.26% on Nov. 5, up from 3.74% recorded on Oct.1.

iShares Floating Rate Bond ETF is nice to avoid duration risk while benefiting from higher short-term yields amid volatile interest rates. Inflation declines are helped by lower oil prices, and sustained rate cuts are less likely in our view due to ongoing price increases by companies. We think the main chance for victory in the inflation battle is if the slightly lower oil and gas prices shift expectations, which are a persistent anchor above target rates.

An upbeat job market and moderately cooling inflation may prevent the Fed from opting for significant rate cuts in the near future.

The iShares Floating Rate Bond ETF is a low Beta, high quality, liquid ETF suitable for most short-term investors. It is designed to preserve wealth, not build it. The high-quality FRNs that FLOT invests in earn a premium yield to T-Bills, despite the fact that they are of similar credit quality. FLOT should continue to outperform money market instruments because the spreads it is locking in today will likely exceed the spreads on offer in a few years' time.

The FLOT ETF provides exposure to floating rate investment-grade bonds. The FLOT ETF has delivered a respectable 8.8% total return since April 2023 with a 5.9% yield. Revisiting my credit investment outlook, I believe following objective indicators like high-yield credit spreads may allow investors to stay invested for longer.

The Fed's Neel Kashkari believes that it's likely that the Fed will cut interest rates once in 2024, possibly in December.