SPSB charges just 0.07% per year, or $7 on a $10,000 investment, making it one of the least expensive short-dated corporate bond funds on the market. The fund holds nearly 1,100 bonds with an option-adjusted duration of 1.87 years and an average yield to worst of 3.21%.
“Without government-guaranteed bonds in its $4 billion basket, though, SPSB generally enjoys higher returns than its rival. The flip side of this is that SPSB is also somewhat more volatile than government bond funds,” reports Investopedia.
Year-to-date, investors have added $1.03 billion to SPSB.
For more trends in fixed income, visit the Fixed Income Channel.