Insurance giant New York Life is listing an actively managed short duration broad-market bond ETF, set to hit exchanges the day the Fed will cut rates.
The IQ Ultra Short Duration ETF (ULTR) will invest in a broad range of investment-grade debt to build a portfolio with a weighted average duration of 1 year or less.
ULTR can invest in fixed and floating-rate, government or corporate debt, as well as other ETFs and derivatives.
Where foreign securities are bought, exposure will be hedged back into US dollars. The fund managers choose securities based on spread, duration, yield, liquidity, among other factors.
It joins a crowding field of short duration ETFs, which have become popular the past few years.
The fund charges 0.24%.
TickerFund NameAUM ($M)TER (% p.a.)InceptionUSIPrincipal Ultra-Short Active Income ETF120.182019AWTMAware Ultra-Short Duration Enhanced Income ETF1350.232019GSSTGoldman Sachs Access Ultra Short Bond ETF150.22019FUMBFirst Trust Ultra Short Duration Municipal ETF200.352018HSRTHartford Short Duration ETF1100.322018JPSTJPMorgan Ultra-Short Income ETF7,5800.182017GBILGoldman Sachs Access Treasury 0-1 Year ETF3,0400.122016