The BNY Mellon Short Duration Corporate Bond ETF (BKSB) tracks an index that offers exposure to investment-grade corporate bonds with a remaining maturity ranging from one to five years. The index includes U.S.-dollar denominated, fixed-rate debt. By investing in shorter-term securities, BKSB reduces interest-rate risk. BKSB might be useful for investors looking to enhance fixed income returns without taking on longer duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. BKSB is priced competitively with ultra-low-cost rivals like the Vanguard Short-Term Corporate Bond ETF (VCSH), the SPDR Portfolio Short Term Corporate Bond ETF (SPSB), and the iShares Short-Term Corporate Bond ETF (IGSB).
Ultra-short debt ETFs are another popular option for investors looking for a relatively safe way to eke out more yield than brokerage sweep accounts or long-term Treasuries. There are several competitors, such as the JPMorgan Ultra-Short Income ETF (JPST), the iShares Ultra Short-Term Bond ETF (ICSH), and the Goldman Sachs Access Ultra Short Bond ETF (GSST).
BKSB is part of a lineup of ETFs introduced by BNY Mellon in April 2020. As a latecomer to a crowded market, BNY Mellon garnered attention by offering extremely low-fee products, including some of the first zero-fee ETFs, making its new funds some of the cheapest on the market.