Short-duration bonds offer attractive yield/duration
Given longer-term interest rate uncertainty, short-duration assets may provide investors with better yields with less term-risk than longer-dated bonds.
*A CD is a savings account that holds a fixed amount of money for a fixed period of time, and in exchange, the issuing bank pays interest and is FDIC insured up to $250,000 per the US Securities and Exchange Commission. When you redeem your CD, you receive the money you originally invested plus any interest. Short-Term Bonds invest primarily in corporate and other investment-grade U.S. fixed-income issues and typically have durations of 1.0 to 3.5 years. Intermediate Core-Plus Bonds invest primarily in investment-grade U.S. fixed-income issues including government, corporate, and securitized debt, but generally have greater flexibility than core offerings to hold non-core sectors such as corporate high yield, bank loan, emerging-markets debt, and non-U.S. currency exposures. Returns for 3-years and 5-years are annualized. Average returns are calculated following peak CD rate periods, it is important to note that other periods may have produced different results. CD peak rate periods are based on historical monthly data. For illustrative purposes only. Investing involves risks. Some investments are riskier than others. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. Past performance is no guarantee of future results.
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