U.S. Ultrashort Bond Duration

Ultra-short-term U.S. bond mutual funds and ETFs invest the majority of their... Ultra-short-term U.S. bond mutual funds and ETFs invest the majority of their assets in ultra-short duration debt issued by governments (eg. T-bills) and corporations in the U.S. These funds concentrate on fixed income securities that will mature in under 1 year. This category can include mutual funds and ETFs having exposure to a wide range of securities including corporate debt, government debt, mortgage-backed securities, and other asset-backed securities. Typically, they tend to have higher credit risk compared to traditional money market debt and certificates of deposit (CDs) as they can have the liberty to invest in risky securities to generate higher yields. Investors should be careful about investing in ultra-short-term U.S. debt as some of them can lose value in a rising interest rate environment. However, overall, this type of debt security is less sensitive to changes in interest rates than intermediate-term and long-term debt. Last Updated: 03/24/2023 View more View less

Ultra-short-term U.S. bond mutual funds and ETFs invest the majority of their assets in ultra-short duration debt issued by governments (eg. <a href="https://mutualfunds.com/bond-categories/short-term-us-treasury-note-funds-and-etfs/" style="color:#2532d0;text-decoration:underline">T-bills</a>) and corporations in the U.S. These funds concentrate on... Ultra-short-term U.S. bond mutual funds and ETFs invest the majority of their assets in ultra-short duration debt issued by governments (eg. T-bills) and corporations in the U.S. These funds concentrate on fixed income securities that will mature in under 1 year. This category can include mutual funds and ETFs having exposure to a wide range of securities including corporate debt, government debt, mortgage-backed securities, and other asset-backed securities. Typically, they tend to have higher credit risk compared to traditional money market debt and certificates of deposit (CDs) as they can have the liberty to invest in risky securities to generate higher yields. Investors should be careful about investing in ultra-short-term U.S. debt as some of them can lose value in a rising interest rate environment. However, overall, this type of debt security is less sensitive to changes in interest rates than intermediate-term and long-term debt. Last Updated: 03/24/2023 View more View less