The second half brings with it ongoing volatility, tariff uncertainty, and lack of definitive market consensus as to what lies ahead. For advisors and investors wanting to increase defensive plays within bonds, the T.
Don't hold your breath for dollar recovery odds this summer. After the worst first half for the U.S. dollar since Nixon's presidency, risk factors remain elevated in the near term.
July kicks off the beginning of the second half for markets, one likely riddled with ongoing uncertainty and rising risks. Despite recent stock gains, T.
With U.S. tariff impacts becoming more apparent this summer, T. Rowe Price looks to opportunities, risks, and trends in the back half of the year.
Investor worries over the current budget bill in Congress and its ballooning effects on the U.S. deficit, alongside recent downgrades to U.S. credit, sent bond yields climbing in response. Short and ultra-short duration bond ETFs like the actively managed T.
Increasing investor preference for actively managed strategies continues in this year's tumultuous environment. With active ETFs taking increasing market share, advisors and investors have ever-expanding choices when looking to augment existing passive exposures.
Ultra-short and short duration bonds remain an attractive choice for investors looking to hedge in safe haven assets as recession risks rise. Delivering competitive yields with less sensitivity to inflation and interest rates compared to longer-duration bonds, they've proven popular during periods of market uncertainty and drawdown.
T. Rowe Price Ultra Short-Term Bond ETF remains a 'Buy' due to its robust performance, with minimal drawdowns under -0.5%, even during recent market volatility. Unlike other funds, TBUX's construction with corporate bonds and treasuries ensures high liquidity and minimal credit risk, making it a reliable cash parking vehicle. The fund's very short duration of 0.58 years and high investment-grade bond holdings contribute to its stability during market stress.
Two months into 2025, and the fixed income picture appears noticeably uncertain. Entering the year, many market watchers touted a view that emphasized adding duration.
The age of active fixed income may really be here. With the Fed holding off on further rate cuts amid rising uncertainty, active adaptability in bonds may be ready to step up for investors.
What's the story in bonds looking to next year? Gauging how much duration to add to a portfolio certainly remains a key challenge.
T. Rowe Price Ultra Short-Term Bond ETF offers a 5.3% yield with low volatility, investing in a diversified portfolio of investment-grade securities. The ETF has $275m in AUM and a low expense ratio of 17bps, making it cost-effective for investors. It has performed well since inception, but future payouts may drop if FOMC rate cuts continue.