Former U.S. President Donald Trump recently softened his hardline stance, stating that the 145% tariffs on China are not a necessity. This statement surprised global markets, which quickly rebounded. Analysts believe Trump's shift shows the political maneuvering in the trade war, emphasizing that asset allocation stability is crucial.

Increasingly, investors are focusing on assets that offer high yields, resilience, and controllable volatility. Fund managers suggest considering non-investment grade bond ETFs with attractive yields and relatively manageable default risks. The KGI U.S. Non-Investment Grade Bond (00945B) boasts 'stable dividends and controllable volatility', minimizing interest rate sensitivity by shortening duration and excluding high-risk CCC-rated bonds, thus providing a dual advantage of returns and risk management.

Since its listing in July 2024, 00945B has consistently paid dividends 10 times, with most payments ranging from 0.10 to 0.102 USD, yielding an annualized return of nearly 8.0%. For investors seeking cash flow, this price pullback presents a great opportunity for phased investment, as bonds tend to offer steady income, making it an advantageous time to buy.

If you aim to enhance overall yield, consider gradually entering during this pullback to retain cash flow flexibility for the future. 00945B focuses on U.S. high-yield bonds, providing a stable cash flow even during unstable stock market conditions, reducing overall portfolio volatility. If the market enters a rate-cutting cycle, BB to B-rated bonds may benefit from rising bond prices, creating further capital gain opportunities.

It is important to note that 00945B is a non-investment grade bond, which, while excluding high-risk CCC-rated assets, still carries a higher credit risk compared to investment-grade bonds. In the event of an economic downturn or deterioration in company health, the default rate may increase. Additionally, as the ETF is dollar-denominated, investors should be mindful of exchange rate fluctuations and the need for sustained liquidity.