Dimensional Short-Duration Fixed Income ETF

DFSD

Market cap $6.87B

Short-term investment-grade bond strategies, with durations in the two-to-three-year range, are well positioned to capture a meaningful yield advantage without the rate sensitivity that has challenged longer duration strategies in recent months. The yield to worst on a diversified short-term bond portfolio currently sits between 4.5% and 5.0%, more than 100 basis points above what bank savings accounts and government money market funds are currently yielding. Although the path for rates is highly uncertain, the range of outcomes in which short-term bonds outperform cash is considerably wider than the range in which they don't.

Stocks are holding firm near all-time highs. But Wall Street can't ignore the record amounts of cash still parked on the sidelines.

Blurring the lines between conference and festival, this year's Future Proof brought thousands of attendees to the summery shores of Huntington Beach in Los Angeles.

Higher for longer. This was the key message to me from advisors and ETF industry folks at the Exchange conference when talking about fixed income.