U.S. Short-Term Bond Duration

Short-term U.S. bond mutual funds and ETFs invest the majority of their... Short-term U.S. bond mutual funds and ETFs invest the majority of their assets in short- duration debt issued by governments and corporations in the U.S. These funds concentrate on fixed income securities that will typically mature within 3 years. This category can include mutual funds and ETFs having exposure to short-term government debt, which could be issued either by the U.S. Department of the Treasury (eg. Treasury Notes) or by government-sponsored agencies such as Fannie Mae. Short-term municipal bond based mutual funds and ETFs, which include debt issued by different U.S. states and local governments, can be part of this category. Additionally, mutual funds and ETFs investing in short-term U.S. corporate bonds of various credit qualities can be also included in this category. Investors often seek exposure to short-term U.S. bonds if they want to own a fixed-income investment but believe that interest rates will rise, as short duration debt is less sensitive to changes in interest rates than intermediate-term and long-term debt. Last Updated: 01/23/2025 View more View less

Short-term U.S. bond mutual funds and ETFs invest the majority of their assets in short- duration debt issued by governments and corporations in the U.S. These funds concentrate on fixed income securities that... Short-term U.S. bond mutual funds and ETFs invest the majority of their assets in short- duration debt issued by governments and corporations in the U.S. These funds concentrate on fixed income securities that will typically mature within 3 years. This category can include mutual funds and ETFs having exposure to short-term government debt, which could be issued either by the U.S. Department of the Treasury (eg. Treasury Notes) or by government-sponsored agencies such as Fannie Mae. Short-term municipal bond based mutual funds and ETFs, which include debt issued by different U.S. states and local governments, can be part of this category. Additionally, mutual funds and ETFs investing in short-term U.S. corporate bonds of various credit qualities can be also included in this category. Investors often seek exposure to short-term U.S. bonds if they want to own a fixed-income investment but believe that interest rates will rise, as short duration debt is less sensitive to changes in interest rates than intermediate-term and long-term debt. Last Updated: 01/23/2025 View more View less