Neuberger Berman Short Duration Income ETF

NBSD

Market cap $422M

October 29 brings the conclusion of another two-day meeting of the Federal Open Market Committee (FOMC). The consensus wisdom indicates the Fed will pare interest rates again by at least 25 basis points.

Neuberger Berman Short Duration Income ETF (NBSD) offers a multi-sector, short-duration fixed income strategy after converting from a mutual fund in June 2024. NBSD maintains a 2-year duration, 5.1% SEC yield, and diversified exposure across investment grade, securitized, and agency MBS sectors, with capped high-yield allocation. NBSD has outperformed NEAR over the past year, providing an attractive alternative as money market yields decline amid anticipated Fed rate cuts.

Tariff uncertainty and job market weakening added new layers of complexity to early September markets. August's significant miss on the jobs report sent investors piling into Treasuries, betting big on a Fed interest rate cut later this month.

The onset of aggressive U.S. tariffs at the beginning of the second quarter resulted in pronounced market volatility. As the dollar slid and bond yields rose, investor concerns of diminishing foreign investor demand for U.S. bonds grew.

Advisors and investors looking to shore up short duration exposures in ongoing market volatility would do well to consider the Neuberger Berman Short Duration Income ETF (NBSD). The actively managed fund seeks reliable income and provides diversification within short duration bonds.

With the direction of interest rates in constant flux, a continuous go-to strategy for bond exposure is still short duration debt issues. That said, consider an active approach with the Neuberger Berman Short Duration Income ETF (NBSD).

Advisors don't want to take on much interest rate risk. But many are willing to take on some credit risk.

While investors look to further interest rate guidance from the Fed this week, maintaining position on the short-end of the yield curve will likely prove beneficial. The Neuberger Berman Short Duration Income ETF (NBSD) appears well-positioned for current rates as well as any potential rate cuts this year.

Advisors and investors found themselves navigating tumultuous markets as U.S. tariffs took effect in April. Frequent changes to tariffs only fueled the fire of greater uncertainty and worry, leading many investors to seek refuge in short duration bonds.

Investors anxiously await the latest announcement from the White House on Wednesday regarding new tariffs on imports. Advisors and investors looking to hedge against volatility and longer-term inflationary impacts of tariff wars would do well to consider the Neuberger Berman Short Duration Income ETF (NBSD).