Columbia Threadneedle Investments launches The Columbia Short Duration Bond ETF (SBND), a new strategic beta bond ETF designed to deliver risk-adjusted yield in an uncertain rate environment.
The Columbia Short Duration Bond ETF (SBND) seeks to differentiate itself from other short duration products by providing exposure to a diversified pool of fixed income sectors including: U.S. investment grade corporates, U.S. investment grade securitized debt, U.S. high yield, and emerging market sovereign and quasi-sovereign debt. Many of the other short duration solutions on the market today are weighted heavily towards corporate or government debt. SBND’s strategy leverages a balance of yield, quality and liquidity.
“Against a backdrop of market uncertainty, we’ve seen investors increasingly use short-term bond funds to simply ‘park’ their assets until they decide what to do next,” says Marc Zeitoun, Head of Strategic Beta at Columbia Threadneedle Investments. “For most, this will result in an unwanted give-up on yield. We believe a cost-efficient and thoughtfully diversified strategy offers a better way to shorten portfolio duration without sacrificing income potential.”
SBND tracks the firm’s proprietary Beta Advantage® Short Term Bond Index, which provides a rules-based approach to investing that is diversified and weighted toward opportunity rather than indebtedness. SBND joins the ranks of Columbia’s highly regarded set of fixed-income strategic beta solutions, MUST and DIAL.
Columbia Threadneedle Investments is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $593 billion2 of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.
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