A version of this article will be published in the June 2014 issue of Morningstar ETFInvestor. Download a complimentary copy here.
There were 31 short-term bond exchange-traded funds with a combined $60.9 billion in assets as of the end of May. They offer yields ranging from nil, in the case of SPDR Barclays 1-3 Month T-Bill (BIL), to more than 2%, in the case of AdvisorShares Newfleet Multi-Sector Income (MINC). The biggest, Vanguard Short-Term Bond ETF (BSV), yields a little more than 1%. A few, like PIMCO Enhanced Short Maturity ETF (MINT) and iShares Short Maturity Bond (NEAR), step into the gap created by tighter money market fund rules.
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Samuel Lee does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.