Advisors and investors looking to shore up short duration exposures in ongoing market volatility would do well to consider the Neuberger Berman Short Duration Income ETF (NBSD ). The actively managed fund seeks reliable income and provides diversification within short duration bonds.
Ongoing U.S. economic uncertainty and policy-driven volatility create a challenged backdrop for U.S. bonds this year. The U.S. dollar continues to slide as concerns surrounding the growing U.S. deficit grow, and bond demand dims on aggressive and volatile U.S. trade policies. While risks remain, short duration exposures will likely prove a popular choice amongst investors looking to hedge against rate and policy uncertainty.
Enhance Your Diversification in Short Duration With NBSD
The actively managed Neuberger Berman Short Duration Income ETF (NBSD) seeks to generate reliable income while providing an investment-grade, short duration profile for portfolios. Short-term bonds often prove appealing for their reduced rate risk in challenging environments. In addition, investment-grade bonds generally carry a low credit risk. Combining the two creates reliable income potential for portfolios when market volatility and uncertainty rise.
NBSD invests across a variety of sectors and bond types, including fixed- and floating-rate investment-grade bonds, both foreign and domestic. These can include asset- and mortgage-backed securities, collateralized debt obligations (including CLOs), and credit risk transfer securities. Top sectors invested in within short duration included investment grade credit at 37.1% and securitized credit at 34.1% as of March 31, 2025. The fund also has a distribution rate of 5.02% as of May 31, 2025. Distribution rate annualizes the most recent distribution and divide’s by the fund’s NAV. It provides a forward-looking measure of what an investor would earn in a year should distributions hold steady.
The management team considers qualitative as well as quantitative factors when selecting securities. They search for underpriced bonds, both on a sector level as well as within peer groups. While 80% of the fund comprises investment-grade bonds, up to 20% may be below investment-grade. When investing in these junk bonds, the fund managers seek issuers in relatively strong financial health and whose credit scores may increase.
NBSD carries an expense ratio of 0.35%.
For more news, information, and analysis, visit the Invest Beyond Cash Channel.
