ETF NEWS - ULTUMUS

Ultra Short Duration

Written by Bernie Thurston | 23 April 2019

USA

Principal lists actively managed ultra short duration ETF

Principal Global Investors is listing a new actively managed short duration bond ETF, in what is becoming a popular listing area in the ETF industry.

The Principal Ultra-Short Active Income ETF (USI) will invest in investment-grade bonds and other debt securities. The fund can invest in debts from any government or company but will concentrate on debts from the US financial services industry.

The fund will maintain an average effective maturity of three years or less and an average portfolio duration of one year or less. The fund will charge 0.18%. 

Beyond this, the prospectus doesn’t give away too much.