FlexShares Ultra-Short Income Fund

RAVI

Market cap $1.45B

FlexShares Ultra-Short Income Fund ETF warrants a sell rating due to the risk of declining interest rates impacting bond yields and increasing opportunity costs. RAVI offers a high yield compared to peers but has a higher expense ratio and lower quality bond ratings, increasing investor risk. Declining interest rates are expected to reduce RAVI's yield, making it less attractive compared to equities and other asset classes.

Many investors still find themselves sitting on excess cash in their portfolios, an unsurprising fact given ongoing volatility and uncertainty. Brian Kennedy of Loomis, Sayles & Company and Ronit Walny of Northern Trust Asset Management joined VettaFi's Cinthia Murphy to discuss how they're thinking about bonds in the year's final quarter.