TBUX ETF

T. Rowe Price Ultra Short-Term Bond ETF offers a 5.3% yield with low volatility, investing in a diversified portfolio of investment-grade securities. The ETF has $275m in AUM and a low expense ratio of 17bps, making it cost-effective for investors. It has performed well since inception, but future payouts may drop if FOMC rate cuts continue.

T. Rowe Price Ultra Short-Term Bond ETF invests in a diversified portfolio of high-quality, short-term investment-grade bonds, aiming for slightly higher yields than T-Bills. TBUX has a 0.67-year duration, 4.94% 30-day SEC yield, and low volatility, making it a compelling cash parking vehicle. The fund's active management and robust composition of AAA, A, and BBB assets have historically outperformed peers, despite slim differences in total returns.

Considering your options in fixed income? With the rate cut dam broken, the fixed income landscape may be poised for further changes.

The focus for U.S. investors this year is largely centered around the ongoing rate cut uncertainty. The Federal Reserve's decision on whether or not to cut rates has become a major topic, diverging from the expectations at the beginning of 2024 when multiple cuts seemed likely.

Yes, we're on track for rate cuts this year – the Fed has admitted as much. However, it's the “when” that matters here, with Fed Chair Jerome Powell recently reminding markets that the bank will need to see evidence of inflation cooling further before cuts can occur.

Are interest rates finally taking their bite out of the economy? Friday's news that hiring had slowed certainly adds to the case.

Active management has had a big 2023 so far, with investors and advisors alike upping their interest in active strategies. The active ETF narrative has focused on equities, yes, but investors and advisors shouldn't forget active's role in fixed income.