ETF Trends on Short-Term Bond ETFs
ETF Trends writes "Short-Term Bond ETF Options as SEC Mulls Money Market Reform". The article says, "Ultra-short-duration bond exchange traded funds have garnered attention as an alternative to money market funds with the SEC set to implement structure changes in coming months. However, the SEC could scale down rules to exempt some investors.... While mom-and-pop investors may be exempt from floating money funds, the SEC can still draw up provisions requiring investors to pay a withdrawal fee during times of stress or even face a hold on money. On Monday, the agency released a series of memos that showed empirical evidence for imposing redemption fees during volatile markets, which suggests the SEC is considering a combination of both floating share prices with curtailing redemptions during certain times. Any changes in the money markets could support the growing fixed-income ETF market, notably ultra-short-duration bond funds as a cash alternative. For instance, the PIMCO Enhanced Short Maturity ETF (NYSE: MINT) has a 0.57% 30-day SEC yield and a 0.69 year effective duration. The Guggenheim Enhanced Short Duration Bond (NYSE: GSY) has an average 0.33 year duration and a 0.98% 30-day SEC yield. The iShares Short Treasury Bond ETF (NYSE: SHV) has an effective duration 0.36 year and a 0.07% 30-day SEC yield. The SPDR Barclays 1-3 Month T-Bill (NYSE: BIL) has an effective duration 0.09 year and a -0.08% 30-day SEC yield."
