A few possible choices to consider are Ridgeworth Seix Floating Rate High Income or Eaton Vance Floating Rate. For high-yield bonds, consider the Vanguard High-Yield Corporate funds sub-advised by Wellington Management or Mainstay High Yield. These suggestions do reduce interest-rate risk but have the downside of greater volatility and more correlation to stocks.
2. Reduce exposure to interest-sensitive equities. Consider reducing your exposure to U.S. real estate investment trusts, utility stocks and high dividend-paying equities, as these are sensitive to rising interest rates. While they have enjoyed several years of great performance as interest rates fell broadly, that party may be ending soon.
Read MoreTake steps before rates rise
The problem is that REITs are expensive and have little yield cushion. While utilities have a slightly higher yield, they are heavily regulated and their prices have been bid up significantly in the past year.
For high-dividend mutual funds and ETFs, it's important to know what you own. Companies can, and have, raised dividends in the past few years, yet many of the highest-yielding stocks have been bid up to levels that make holding these companies less attractive.