TUSI Profile
The Touchstone Ultra Short Income ETF is designed to offer investors a low-risk investment option by focusing on high-quality fixed-income securities. Under normal market conditions, the fund commits at least 80% of its assets to investment-grade debt securities. These are securities rated BBB-/Baa3 or higher by Nationally Recognized Statistical Rating Organizations (NRSROs), or those considered to be of similar quality by the sub-advisor, Fort Washington Investment Advisors.
The ETF primarily invests in a diverse range of short-duration, investment-grade bonds. This includes government securities, corporate bonds, and other fixed-income instruments that are rated investment-grade. By concentrating on short-duration securities, the fund aims to minimize interest rate risk while providing a stable income stream. The emphasis on high credit quality seeks to reduce credit risk and potential defaults, appealing to conservative investors looking for safety and stability in their fixed-income allocations.
Fort Washington, the sub-advisor for the fund, employs a rigorous selection process to ensure that the securities included in the fund meet high standards of creditworthiness. The firm’s expertise in fixed-income investing is leveraged to manage the portfolio's risk and return profile effectively. The fund's strategy focuses on maintaining a short average duration to limit exposure to interest rate fluctuations, which can be particularly important in a rising interest rate environment.
The Touchstone Ultra Short Income ETF is well-suited for investors seeking a low-risk, income-generating investment with limited interest rate sensitivity. It provides a potential solution for managing cash or as a conservative component in a broader investment portfolio. Given its focus on short-duration, high-quality debt securities, the ETF aims to deliver stable returns while preserving capital, making it an attractive option for risk-averse investors seeking to navigate uncertain market conditions.
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