Home etftrends.com How Short Duration ETF LSST Adds Income to Portfolios

How Short Duration ETF LSST Adds Income to Portfolios

Looking to add income to personal or client portfolios? The economy may be humming along steadily, but that doesn’t mean investors can’t benefit from current income. Indeed, both inflation and deferred rate cuts speak to the merits of steady income in a portfolio. That said, finding the right strategy matters. A short duration ETF like LSST, for example, may offer one strong option worth considering.

See more: The Patient Art of Focused Growth Investing 

The Natixis Loomis Sayles Short Duration Income ETF (LSST) charges 35 basis points for its approach. The fund actively invests, seeking capital preservation on top of income. It does so by looking for short duration fixed income products with maturities of about one to three years. LSST primarily holds investment-grade corporate bonds and variable and floating-rate securities.

The short duration ETF has the ability to invest outside the U.S., too, while also potentially allocating to high yield opportunities. Its active managers also consider macroeconomic and sector analyses as part of its efforts.

The active, short duration approach may stand out, especially given the uncertainty around interest rates. Investors may have previously been concerned about imminent cuts and, therefore, avoided certain fixed income products. Now, with cuts further and further away, a short duration strategy may appeal by comparison.

According to VettaFi data, LSST has returned 2.2% over the last five years, which helped the strategy outperform its ETF Database Category and FactSet Segment averages during that time.

Building a portfolio requires all kinds of fixed income allocations, from core to short duration holdings and more. LSST presents one strong option for doing so. With current income potentially a crucial part of a 2024 strategy, investors may want to take a closer look at the strategy.

For more news, information, and analysis, visit the Portfolio Construction Channel.

newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFTrends.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.