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