SDSI seeks income and, as a secondary objective, long-term capital appreciation. The strategy will seek to generate attractive yield by investing across multiple fixed income market segments, which maintain a short duration focus.
The fund invests in both investment-grade and high-yield, non-money market debt securities. These securities may include corporate bonds and notes, government securities, and securities backed by mortgages or other assets.
“SDSI expands our existing Short Duration Strategic Income capabilities to an actively managed ETF,” said Ed Rosenberg, American Century’s head of ETFs, in a news release. “The Short Duration Strategic Income ETF seeks to complement an investor’s core bond holdings with high current income, broad diversification, and the potential to mitigate the impact of rising rates.”
Jason Greenblath, Charles Tan, Jeffrey Houston, and Peter Van Gelderen will manage the strategy.
“SDSI complements the existing (MUSI ) ETF, launched in June 2021, which leverages the same philosophy, process, and portfolio management team but targets a short duration," Greenblath said.
SDSI is a transparent active ETF with holdings disclosed daily and an expense ratio of 0.32%.
For more news, information, and strategy, visit the Core Strategies Channel.