Frequently Asked Questions

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How do ultra short-term bonds differ from other types of bonds?


Ultra short-term bonds differ from other types of bonds in that they have a shorter maturity period, typically less than one year. Because of their shorter duration, they are generally less sensitive to interest rate fluctuations and may offer higher liquidity compared to longer-term bonds, ideal for investors with short-term investment goals. These bonds may be suitable for investors with short-term investment goals and seeking potentially stable returns, but they still carry credit, market, and liquidity risks. Additionally, they often have lower fees compared to other bond funds, making them an attractive investment option for investors seeking capital preservation and diversification.