Short-Term Corporate Bond

Short-term corporate mutual funds and ETFs invest in debt securities, issued by... Short-term corporate mutual funds and ETFs invest in debt securities, issued by companies, with a typical duration of 1 to 3 years. These bonds can be issued by investment-grade, below-investment grade, or high-yield (‘junk’) issuers. The shorter duration of these bonds makes them less sensitive to changes in interest rates than either intermediate-term corporate bonds or long-term corporate bonds. As these bonds are relatively less volatile than longer duration bonds, conservative investors not willing to lose their investment capital tend to purchase investment-grade short-term corporate bonds and ETFs. A point to note is that the interest an investor in short-term corporate bonds receives is generally less than that of intermediate and long-term corporate bonds as they carry relatively less risk. Last Updated: 05/09/2024 View more View less

Short-term corporate mutual funds and ETFs invest in debt securities, issued by companies, with a typical duration of 1 to 3 years. These bonds can be issued by investment-grade, below-investment grade, or high-yield... Short-term corporate mutual funds and ETFs invest in debt securities, issued by companies, with a typical duration of 1 to 3 years. These bonds can be issued by investment-grade, below-investment grade, or high-yield (‘junk’) issuers. The shorter duration of these bonds makes them less sensitive to changes in interest rates than either intermediate-term corporate bonds or long-term corporate bonds. As these bonds are relatively less volatile than longer duration bonds, conservative investors not willing to lose their investment capital tend to purchase investment-grade short-term corporate bonds and ETFs. A point to note is that the interest an investor in short-term corporate bonds receives is generally less than that of intermediate and long-term corporate bonds as they carry relatively less risk. Last Updated: 05/09/2024 View more View less