There are short duration bonds and corresponding ETFs. For advisors and fixed income investors who really want to minimize interest rate risk, there are ultra-short alternatives.
The AB Ultra Short Income ETF is an actively managed, ultra-short duration ETF focused on capital preservation and liquidity, investing primarily in investment-grade instruments. YEAR is overweight corporate bonds (41%) and treasuries (36%), maintaining a low duration of 0.9 years and a low standard deviation of 1%. YEAR compares favorably with peers like PIMCO Enhanced Short Maturity ETF and iShares Ultra Short-Term Bond Active ETF, showcasing robust total return performance.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| CE Curtis Ellergodt Rothschild Investment LLC | 4,975 | $251,743.63 | $250,093.25 | -$1,650.38 | -0.66% |
Kimberly Foster Laraway Financial Advisors Inc. | 10,293 | $522,204.38 | $517,377.64 | -$4,826.74 | -0.92% |
| CB Catherine Bluvol Next Level Private LLC | 9,421 | $475,572.08 | $473,546.56 | -$2,025.52 | -0.43% |
| JMP James M. Perkins Quantum Private Wealth LLC | 19,501 | $988,310.68 | $980,315.27 | -$7,995.41 | -0.81% |
| SM Sarah Moore BOS Asset Management LLC | 953,584 | $48.24M | $47.94M | -$296,868.62 | -0.62% |
| ARCA Exchange | US Country |
This ETF represents an actively-managed investment vehicle that focuses on a diversified portfolio of fixed-income securities. The fund primarily targets investments in both U.S. government and investment-grade corporate bonds. Designed for investors seeking exposure to the fixed-income market, the fund offers a strategy that aims to provide returns through a mix of securities that under normal conditions, have a dollar-weighted average duration of less than one year. This approach suggests a relatively lower interest rate risk compared to longer-duration bond funds. The fund is flexible in its investment choices, not limiting itself to bonds of a specific duration or maturity, thus enabling it to navigate various market conditions.
The fund offers a focused range of investment vehicles within the fixed-income category, each chosen with the aim of achieving the fund's objective of capital preservation and income generation through lower-risk securities: