Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Look at Ultra-Short Funds While Waiting for Rates

BY | ETF Database
03/28/2024 | 493 VIEWS
Uncertainty currently reigns supreme with investors and traders alike trying to anticipate where the economy is headed.Fortune reported that a recent survey from Deutsche Bank found that 45% of investors see the U.S. economy reaching a “no landing” scenario. A “no landing” would leave inflation above the 2% target for the Federal Reserve, while growth remained strong. Interestingly, Fortune notes that 19% of investors told Deutsche Bank that they don’t know when the next U.S. recession will happen. That’s up 16% from last year’s findings. With mounting confusion regarding economic expectations for 2024, it’s worth looking for investment options that could mitigate potential shifts down the line. In situations like these, ultra-short investing strategies can warrant consideration.Ultra-Short OptionsMorgan Stanley’s roster of ETFs includes multiple ultra-short investment options. One such fund is the Eaton Vance Ultra-Short Income ETF (EVSB A). It is actively managed and prioritizes accruing income. EVSB primarily invests in short-term securities, including floating-rate, fixed, and variable options. The wide majority of chosen securities for the fund are investment grade. However, the fund may invest up to 10% of net assets in junk bonds as well. The fund has a low net expense ratio of 0.17% and has seen net flows of over $17 million in the last three months. Alternatively, investors may wish to consider the Calvert Ultra-Short Investment Grade ETF (CVSB ), which incorporates ESG criteria into its evaluations of stocks. Like EVSB, CVSB is actively managed and allocates assets to investment-grade securities. CVSB features a net expense ratio of 0.24%, also on the lower side. Up to half of net assets for the fund may be invested in asset-backed or mortgage-backed securities issued by agencies in the U.S. government. The fund may also direct up to 25% of investment into foreign debt securities. CVSB is currently up nearly 7% over the last 12 months. Ultra-short options like CVSB and EVSB can provide notable security against potential interest rate shifts down the line. Both funds possess a low expense ratio and positive prospects of tax efficiency. So these ultra-short options could lead to good returns while the market waits for the Fed’s next move.For more news, information, and analysis, visit The ETF Yield Channel.

More Commentary

Top Performing Leveraged/Inverse ETFs: 04/21/2024
BY | ETF Database
04/23/2024 | 609 VIEWS
Earnings Theater Likely Meaningful for These ETFs
BY | ETF Database
04/23/2024 | 128 VIEWS
Retail Sales Rise for Second Straight Month in March
BY | ETF Database
04/19/2024 | 64 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.

Copyright 1998–2024 FMR LLC. 
All rights reserved.