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T. Rowe Price Ultra Short-Term Bond ETF TBUX targets higher yields
TBUX charges 17 bps, invests mainly in investment grade debt with a 1.5-year or shorter duration, and returned 4.6% over the prior 12 months ended June 30, according to T. Rowe Price data.
Bond markets have been roiled by rising uncertainty tied to geopolitical, trade, debt, and currency pressures, pushing yields higher across global government and corporate segments. In that environment, ETF Trends highlights shorter duration bond exposure as a way to potentially position portfolios for continued yield volatility.
The outlet points to T. Rowe Price Ultra Short-Term Bond ETF, ticker TBUX, as a candidate for investors focused on near-term debt. The active fund charges 17 basis points and primarily invests in investment grade bonds with a duration of 1.5 years or less.
TBUX’s multisector strategy can include corporate, government, mortgage- and asset-backed securities, while limiting non U.S. dollar foreign issued debt to 10%. ETF Trends says the portfolio is designed to provide income across a range of debt offerings.
On recent performance, ETF Trends cites T. Rowe Price data showing the fund returned 4.6% over the last twelve months ended June 30, and posted a 4.52% 30-day SEC yield as of July 31. The outlet also notes the fund’s active approach allows its managers to adapt rather than track a fixed index as yields move.