Keeping a Short Duration Leash on Bond ETFs

Related: A Refreshed Look at an Intermediate-Term Corporate Bond ETF

Year-to-date, investors have added $7.35 billion in new assets to SHV, good for the best inflows among any fixed income ETF and the fourth-best total overall among US-listed ETFs.

“The choice between ultra-short, short-term or floating rate bonds depends on your holding period and investment objectives,” said BlackRock. “For a very short-term holding period, consider sticking to high-quality ultra-short maturities, such as less than one year. If you have a longer holding period (over 12 months), short-maturity fixed-rate bond ETFs can provide more income potential during rising rate periods if you can tolerate the price changes over the period.”

For more trends in fixed income, visit the Fixed Income Channel.