American Century Short Duration Strategic Income ETF

SDSI

Market cap $246M

Clients looking for income? Not satisfied with your core fixed income allocation and want to add some oomph?

May saw strong traffic on ETF Trends and ETF Database, with articles drawing attention to key market concerns, like interest rates and AI, ranking high with readers. Todd Shriber's article “Micron Stock Feels Unstoppable and That's Good for This ETF” claimed the top ranking for the month.

With 10-year Treasury yields too high for many investors' comfort and with the Federal Reserve potentially boxed into a corner of not cutting interest rates this year, advisors and fixed income investors are revisiting short duration bonds and the related ETFs.

2026 is somehow almost halfway through, and the market environment has seen quite a lot happen since its start. Entering the year, investors hoped for rate cuts from a new Fed chair.

The “will they, won't they” between the Trump administration and the Iranian government has gone on for weeks, and while headlines avoid it, the energy disruption remains a huge story. Not only has infrastructure been devastated in key energy production zones, but other critical commodities like fertilizer have become much more expensive as well.

It's certainly no secret that some advisors are viewing fixed income as a safe haven from U.S. equity volatility. Given the correlation dynamic between stocks and bonds, this shouldn't come as a particular surprise.

Tired of market selloff drama and turmoil? It may be time to add some dividend exposure via income ETFs.

Tariffs and interest rates are major contributors to the wall of worry for investors. It's not just affecting the equities market, it's affecting fixed income.

Is now the time for short duration bonds? It very well may be.

2025 is fully in gear, and with it, investors may be looking at refreshing their fixed income portfolios. What's more, with the Fed pausing rate cuts for now, many investors may want to adjust for a year of mostly steady rates.