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Got Interest Rate Worries? Consider Structured Credit

BY | ETF Database
7:57 am ET 09/24/26 | 6 VIEWS
Now that interest rates are on the rise once more, folks are likely looking to reposition their portfolios to best navigate this new environment.Key Takeaways: With rate hikes back on the menu, folks may want to adjust their fixed income portfolios. Structured credit strategies can provide a diversified means to tap into floating-rate securities. This offers a strong use case in the current rate environment. Guggenheim offers compelling actively managed exposure to the structured credit market through the Guggenheim Securitized Income ETF (GISC). This should come as little surprise, given that this recent rate hike was the Fed’s first in over three years. Of course, shifting interest rates have a noticeable effect on a variety of different fixed income approaches. Many traditional bond strategies, in particular, often see their value damaged as rates move up. Advisors and investors are not just looking at the short-term outlook, either. As many wonder if additional hikes are on the horizon, the long-term outlook for rates remains relatively uncertain. Moments like this highlight the advantages of fixed income approaches that can perform better amid shifting interest rates. This includes structured credit investment approaches and ETFs. Here’s why: structured credit strategies can provide a diversified means to generate yield and returns that do well as interest rates move. Many structured credit securities, such as collateralized loan obligations (CLOs) and floating commercial mortgage-backed securities (CMBS), offer floating-rate payouts that adjust to interest rate movements. See More: GCSH Passes $250 Million in AUM: Here’s How It Happened Again, structured credit approaches also provide the advantage of diversification. Instead of focusing on the usual bond investments, these strategies lean into securitized debt, providing distinct asset exposures that offer their own credit profiles.Lean Into Structured Credit With GISCAdvisors and investors looking to lean into the opportunity set within the structured credit market may want to consider the Guggenheim Securitized Income ETF (GISC). GISC is an actively managed fund from the Guggenheim team that provides income and maximized total return through the structured credit markets. The fund leverages Guggenheim’s expertise, along with the inherent benefits of active management, to tap into complexity premiums and outpace competing funds on the market. On the performance front, GISC is generating a highly compelling yield profile that may help justify its use case. As of August 31, 2026, the fund has a 30-day SEC yield of 5.23%. For more news, information, and analysis, visit the Fixed Income Content Hub.

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