Short-Term Bonds

Components Performance/Risk
Period Return
5.9%
Return Rank
Below Average
Risk Exposure
Low Risk

The strategy laid-out by the U.S. Federal Reserve aims to constrain the rise of the interest rate at the short-maturity end of the yield curve

With inflationary anticipations on the rise, the Fed has little room to maneuver (and maybe none...)

Net interest on public debt grew by 11%, or $114 billion, to a total of $1.1 trillion in fiscal year  2026, according to a report published on Nov. 9, 2026, by the Congressional Budget Office.

 Investors are prioritizing short-term bonds in anticipation of abundant supply, cautious and reluctant rise in interest rates and persistent inflationary pressure

 

This extensive selection of ETFs invested in short term bonds (3.5 years on average) complements other themes focused on short duration 

 

The principal of short-duration bonds is repaid quickly which limits sensitivity to rate policy (interest rate risk exposure)

However, potential credit risk, the inability of corporate bond issuers to pay the coupons or even the principal, could be of special significance in volatile macro-economic conditions

 

Corporate High Yield funds have stood out with high performance and relatively low volatility, reflecting careful selection of investment-grade and sub-investment-grade borrowers

Still, ETF performance of “enhanced” and “core” short-term bonds, ranked immediately below high-yield achievers but seeking higher yield, remain potentially exposed to credit risk

A range of 'high performance' ETFs is listed - by ranking their risk contribution to the theme, computed on their price volatility history, future investors may gain further insights

 

Rank the fund selection by performance or by volatility for the time period of your preference

Fund price momentum signals trends of the last 5 days against a 20-day average 

For comparison, select various time frames in the top right menu box, from 2 weeks to a full year 

Theme Components
Name
Ticker
Category
SubCategory
Cur. Price
Performance
Momentum
Risk Rank
Risk Contrib
 
First Trust Enhanced Short Maturity FTSM AggregateShort Term59.617.8% Strong Up Low Risk
PIMCO Enhanced Short Maturity Active ETF MINT AggregateShort Term100.518.5% Strong Up Low Risk
iShares Core 1-5 Year USD Bond ETF ISTB AggregateShort Term47.315.7% Neutral Low Risk
WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund SHAG AggregateShort Term46.614.7% Neutral Low Risk
VictoryShares USAA Core Short-Term Bond ETF USTB AggregateShort Term49.947.5% Neutral Low Risk
Capital Group Short Duration Income ETF CGSD AggregateShort Term25.366.5% Neutral Low Risk
SGI Enhanced Core ETF USDX AggregateShort Term25.6011.5% Weak Up Below Average
BlackRock Short Duration Bond ETF NEAR AggregateShort Duration49.932.9% Neutral Low Risk
SPDR® DoubleLine® Short Duration Total Return Tactical ETF STOT AggregateShort Duration46.376.9% Neutral Low Risk
Columbia Short Duration Bond ETF SBND AggregateShort Duration18.386.3% Neutral Low Risk
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