ETF Bond Duration: Ultra-Short-Term
ETFs, or exchange-traded funds, are a type of investment fund that trades on a stock exchange. ETFs provide exposure to a wide range of assets, including stocks, bonds, commodities, and real estate. Ultra-Short-Term bond ETFs are a type of ETF that invests in bonds with short durations, typically one year or less. Ultra-Short-Term bond ETFs offer higher potential returns than traditional bonds while still providing some stability and income. However, they also come with higher risk, as the underlying bonds are more sensitive to changes in interest rates. As a result, Ultra-Short-Term bond ETFs may not be suitable for all investors. Before investing in an ETF, be sure to research the fund and its holdings to ensure it is aligned with your investment goals.