Ultra-Short Bond Fund

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Definition of 'Ultra-Short Bond Fund'

A type of bond fund that invests only in fixed-income instruments with very short-term maturities. An ultra-short bond fund will ideally invest in instruments with maturities around one year. This investing strategy tends to offer higher yields than money market instruments, with less price fluctuations than a typical short-term fund.
Investopedia Says

Investopedia explains 'Ultra-Short Bond Fund'

Ultra-short bond funds offer investors greater protection against interest rate risk than longer term bond investments. Since these funds have very low durations, increases in the rate of interest will affect their value less than a medium or long-term bond fund.

While this strategy offers more protection against rising interest rates, they usually carry more risk than most money market instruments. While certificates of deposits follow regulated investment guidelines, an ultra-short bond fund has no more regulation than a standard fixed-income fund.

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'Ultra-Short Bond Fund'

  • Ultra-Short Bond Funds: More Risk Than Reward?

    http://www.investopedia.com/articles/bonds/09/ultra-short-bond-funds.asp
    ... (For an overview of this particular recession, refer to The 2007-08 Financial Crisis
    In Review.) What They Are An ultra-short bond fund is a mutual fund. ...

  • Mutual Fund Categories | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp3-invest-obj
    ... Ultra-Short Term Bond, Very short maturities. ... High-Yield Corporate Bond, High
    risk-return ("junk bonds"). ... Money Market Fund, For liquidity and safety. ...

  • Mutual Fund Categories | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp3-invest-obj/mf-categories.asp
    ... Ultra-Short Term Bond, Very short maturities. ... High-Yield Corporate Bond, High
    risk-return ("junk bonds"). ... Money Market Fund, For liquidity and safety. ...

  • Mutual Fund Categories | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp3-invest-obj/
    ... Ultra-Short Term Bond, Very short maturities. ... High-Yield Corporate Bond, High
    risk-return ("junk bonds"). ... Money Market Fund, For liquidity and safety. ...

  • Four Market-Beating ETFs In November

    http://stocks.investopedia.com/stock-analysis/2011/Four-Market-Beating-ETFs-In-November-USO-GLD-TLT-SKF1128.aspx
    ... iShares Barclays 20+ Year Treasury Bond Fund (ARCA:TLT ... This fund could suffer a setback
    if investors ... The ProShares UltraShort Financials ETF (ARCA:SKF) posted a ...

  • Better Options Than TIPS

    http://stocks.investopedia.com/stock-analysis/2011/Better-Options-Than-TIPS-TIP-RRF-CPI-IGE-GSG-TBT0827.aspx
    ... in the iShares Barclays Short Treasury Bond (NYSE:SHV ... The fund has returned an
    inflation-beating 12.45 ... Both the ProShares UltraShort 20+ Year Treasury (NYSE:TBT ...

  • Exchange-Traded Funds: ETF Alternative Investments | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/etf8.asp
    ... off investing in foreign stock or bond ETFs ... PowerShares DB Commodity Index Tracking
    Fund ETF (PSE ... of leveraged inverse ETFs include: ProShares UltraShort QQQ ETF ...

  • Looking At The Long Bonds

    http://stocks.investopedia.com/stock-analysis/2010/Looking-At-The-Long-Bonds-TLT-VCLT-MLN-EDV-ZROZ0816.aspx
    ... The UltraShort 20+ Year Treasury ProShares (NYSE:TBT) became a ... years or older, and
    the iShares fund starts at ... The long bond SPDR yields 4.46% and the iShares ...

  • Don't Forget Bonds

    http://stocks.investopedia.com/stock-analysis/2011/Dont-Forget-Bonds-JNK-STPZ-WIP-CSJ-TBT0119.aspx
    ... The fund currently yields 2.04%, but as rates ... Finally, investors hedge their bond
    portfolio against the ... Both the ProShares UltraShort 20+ Year Treasury (NYSE ...

  • Adding Those Smart-Money Touches

    http://stocks.investopedia.com/stock-analysis/2010/Adding-Those-Smart-Money-Touches-ALT-MNA-PSP-SDS-CSM-0917.aspx
    ... benefits to traditional stock and bond portfolios. ... The PowerShares fund yields 4.02%
    and charges 0.60% in ... The ProShares UltraShort S&P500 (NYSE:SDS) makes an ...

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