Goldman Sachs lists actively managed ultra short duration ETF

For those worried the curve will go negative or those simply worried about duration risk, Goldman is listing a new ETF that goes for very short duration bonds. The Goldman Sachs Access Ultra Short Bond ETF will be actively managed and target an effective duration of one year or less.

To do this, they will invest in investment grade US dollar denominated debts from governments, banks and corporates worldwide. However, the prospectus says that it will mostly end up investing in the debts of US financial institutions.

The fund will charge 0.16% in its first year, but after March 2020 may move up to 0.20%, the prospectus indicates.

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