Volatility has shaken up the markets, but ETF investors have a number of strategies to help guide them through more troubled times.
“So we’ve seen a tremendous amount of ETF flow into the ultra-short space this year,” Matthew Collins, VP and Co-Head of ETF Strategy for PGIM Investments, said at the Charles Schwab IMPACT 2018 conference.
For example, at PGIM Investments, their first ETF, the PGIM Ultra Short Bond ETF (NYSE ARCA: PULS), which launched back in April, has gathered $156 million in assets under management on the increased demand for ultra-short-duration debt exposure that helps fixed-income gather a decent yields with minimal risk.
“Short-duration ETFs – both active and passive. A lot of cash flow because clients are looking for protection – not just rates but also equities,” Collins said.
PULS’s risk-managed and short duration approach is designed to help investors hedge against rising rates and enhance or diversify a cash management strategy.