Investors who are seeking cash substitutes may look to actively managed, ultra-short duration bond ETFs that are more free to adapt holdings in a shifting market environment and generate a decent yield along the way.
For example, the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT) has a 2.95% 30-day SEC yield and a 0.26 year duration. The Invesco Ultra Short Duration ETF (NYSEArca: GSY) has a 2.90% 30-day SEC yield and a 0.37 year duration. The SPDR SSgA Ultra Short Term Bond ETF (NYSEArca: ULST) has a 2.80% 30-day SEC yield and a 0.32 year duration. The iShares Short Maturity Bond ETF(NYSEArca: NEAR) has a 3.05% 30-day SEC yield and a 0.52 year duration.
Potential investors should be aware that these active ultra-short-term bond ETFs include corporate debt exposure with some lower quality investment-grade debt exposure, which may have contributed to their relatively higher yields.
Additionally, investors can look at conservative short-duration Treasury bond ETFs, such as the iShares Short Treasury Bond ETF (NYSEArca: SHV), which has an effective duration of 0.40 years and 2.32% 30-day SEC yield, and the SPDR Barclays 1-3 Month T-Bill (NYSEArca: BIL), which has a 0.13 year duration and a 2.20% 30-day SEC yield.
For more information on the fixed-income markets, visit our bond ETFs category.