Analyzing Short-Duration Strategies for Rising Rates

The active ETF may also invest in U.S. Treasury securities, including Separate Trading of Registered Interest and Principal of Securities (STRIPS), securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, securities issued or guaranteed by foreign governments, repurchase agreements, when-issued securities, delayed delivery securities, forward commitments, zero-coupon securities and privately placed securities, according to a prospectus sheet.

The ETF will normally focus investments in the banking industry or hold more than 25% of assets in securities issued by companies in the banking industry. The fund, though, may also invest less than 25% of assets in this industry as a temporary defensive measure.

The bond ETF’s will seek to maintain a duration of one year or less, but it may be exposed to duration longer than one year under certain market conditions such as periods of significant volatility in interest rates and spreads.

Financial advisors who are interested in learning more about the fixed-income markets can register for the Thursday, November 29 webcast here.