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Columbia Ultra Short Term Bond Fund Celebrates 20-Year Anniversary

Bond Funds

Leveraging a Diversity of Perspectives on Rising Rates

An unusual rebound may provide opportunities even as rates rise. Key Insights: T. Rowe Price investment professionals have varying views on the recent increase in Treasury yields but expect an atypical economic rebound later in 2021. We highlight viewpoints related to inflation protected securities, the Treasury yield curve, dividend-paying stocks, emerging markets, and the Federal Reserve. We believe that our diversity of views on the implications of rising rates can give our investment professionals an advantage in this unusual environment.   Just as the sudden shutdown of much of the global economy at the onset of the coronavirus pandemic in 2020 was unprecedented, the expected recovery in 2021 is likely to be unique. Developed market central banks seem determined to maintain their extremely accommodative monetary policies, and fiscal stimulus in many countries as evidenced most recently by the USD 1.9 trillion spending package in the U.S. should make the economic rebound

Vanguard Launches an Active Ultra-Short Bond ETF, VUSB

Vanguard today introduced its first active bond ETF, managed by its in-house fixed income team. The Vanguard Ultra-Short Bond ETF (VUSB) offers a low-cost, diversified option for investors seeking income and limited price volatility. The ETF, which is listed on the Chicago Board Options Exchange (Cboe), has an expense ratio of 0.10%, compared to a categorical average of 0.22%. The “Vanguard Ultra-Short Bond ETF offers the features of an ETF structure for investors seeking an option for anticipated cash needs in the range of 6 to 18 months,” said Kaitlyn Caughlin, head of Vanguard Portfolio Review Department. “An ultra-short strategy bridges the gap between money market funds offering a stable share price and short-term bond funds, which are meant for longer investment time horizons.”

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