BNY Mellon Files for Ultra Short ETF
A new SEC fund filing announces the pending launch of BNY Mellon Ultra Short ETF. It tells us, "The fund seeks high current income consistent with the maintenance of liquidity and low volatility of principal.... To pursue its goal, the fund normally invests in investment grade, U.S. dollar denominated fixed, variable, and floating rate debt or cash equivalents, including the following: Corporate securities; Asset-backed securities; Repurchase agreements; High quality money market instruments, such as commercial paper, certificates of deposit, time deposits and bankers' acceptances; U.S. Treasury securities; Securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, or government-sponsored enterprises (U.S. government securities); Obligations issued or guaranteed by one or more foreign governments or any of their political subdivisions or agencies; Securities issued by foreign corporations or a U.S. affiliate of a foreign corporation; and Securities subject to purchase and sale restrictions that are offered pursuant to Rule 144A under the Securities Act of 1933, as amended." BNY Mellon writes, "The fund's portfolio, under normal market conditions, will have an average credit rating of A or equivalent. The fund's investments, at the time of purchase, will have a minimum short-term credit rating of P-2, A-2 or F2 or better by Moody's Investors Service Inc. (Moody's), Standard & Poor's Corporation (S&P), or Fitch Ratings (Fitch) ... or a minimum long-term credit rating of Baa3, BBB-, or BBB-." It adds, "`The fund's portfolio managers seek to achieve what they believe provides the optimal portfolio for the fund in terms of preservation of principal, liquidity and producing high current income." For more, see these CD News pieces: Vanguard Debuts Ultra-Short Bond ETF (4/8/21); BFS Short vs. Shorter: JPMAM's Martucci and PIMCO's Schneider Speak (4/6/21); Bond Fund Symposium Highlights: Davis, Driscoll, Rothweiler Comment (4/1/21); Federated Hermes Enters Conservative Ultra-Short BF Market; ICD; CAG; and Vanguard Launching Ultra-Short Bond ETF; Weekly MF Portfolio Holdings (1/21/21).
