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.
T. Rowe Price Ultra Short-Term Bond ETF invests in a diversified portfolio of high-quality, short-term investment-grade bonds, aiming for slightly higher yields than T-Bills. TBUX has a 0.67-year duration, 4.94% 30-day SEC yield, and low volatility, making it a compelling cash parking vehicle. The fund's active management and robust composition of AAA, A, and BBB assets have historically outperformed peers, despite slim differences in total returns.
Considering your options in fixed income? With the rate cut dam broken, the fixed income landscape may be poised for further changes.
T. Rowe Price has a lot to commemorate in the ETF industry. The longtime manager of actively managed mutual funds brought some of its best U.S. equity strategies into the active ETF market nearly four years ago.