ETF Trends asks, "Are Active Managers Homing In on Ultra-​Short Bond ETFs?" They write, "Actively managed fixed income products are a huge piece of the fast-​growing space of active financial management. Drilling down further, a specific segment of the bond market is ripe with potential for issuers of active ETFs: ultra-​short term bonds. Several big-​name fund issuers already offer ultra-​short term bond ETFs, several of which are actively managed, and in today'​s low rate environment, it'​s reasonable to expect other issuers will try their hands at this asset class." The article tells us, "For advisors and clients, that could be a positive, because ultra-​short term bonds offer better yields than money markets and less volatility than short-​term bonds. Plus, there are regulatory elements of the money market realm that could make active ultra-​short term fare more attractive for advisors and clients.... As of the end of the first quarter, there was $​98.​5 billion in ultra-​short term ETFs, of which $​56 billion was allocated to active strategies, according to Think Advisor. That'​s confirmation that demand is there for the combination of active management, the ETF structure, and ultra-​short term fixed income instruments. Moreover, there was $​246 billion in ultra-​short term bond mutual funds." ETF Trends adds, "[S]​ome well-​known fund giants are looking to get in on the ultra-​short term bond ETF act. For example, T. Rowe Price recently filed plans for three active bond ETFs, including the T. Rowe Price Ultra-​Short Term Bond ETF. That fund will feature short-​term investment-​grade corporate and government debt. It will be eligible to allocate to mortgage and municipal bonds as well."

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