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American Century Short Duration Strategic Income ETF targets income
SDSI charges a 32 basis point fee and reported a 4.7% 12-month distribution rate and 5.9% yield to maturity as of July 31.
ETF Trends highlights growing interest in income-focused exchange traded funds, pointing to the American Century Short Duration Strategic Income ETF, known as SDSI, as one option for investors seeking income amid rising-cost pressures and an uncertain fixed income outlook.
According to the outlet, SDSI charges 32 basis points for active management across a range of short-duration fixed income holdings, including bank loans, collateralized debt obligations, preferreds, and convertibles. The fund also uses derivatives as part of its approach, with managers aiming to adjust exposure based on current and potential future interest rates.
ETF Trends reports that SDSI returned 4% over the last 12 months, citing American Century Investments data. The fund also posted a 4.7% 12-month distribution rate and a 5.9% yield to maturity as of July 31, along with a 5.36% weighted average coupon, per the same data source.
The outlet adds that income investors have leaned heavily on equity options in recent months, while fixed income has faced a more turbulent environment. It says the ETF structure can offer potential advantages versus mutual funds, including tax efficiency and improved tradability, though it does not provide performance guarantees.