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 (%) |
|---|---|---|---|---|---|
Curtis Ellergodt Rothschild Investment LLC | 5,450 | $275,719.28 | $274,189.5 | -$1,529.78 | -0.55% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 125,809 | $6.33M | $6.32M | -$12,595.85 | -0.2% |
| AB Anthony Bruccoleri Equitable Holdings Inc. | 29,910 | $1.51M | $1.5M | -$7,075.86 | -0.47% |
Kimberly Foster Laraway Financial Advisors Inc. | 10,293 | $522,204.38 | $517,840.83 | -$4,363.55 | -0.84% |
| CB Catherine Bluvol Next Level Private LLC | 9,421 | $475,572.08 | $473,970.51 | -$1,601.57 | -0.34% |
| 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: