WealthManagement.​com writes "Cashing in on Ultra-​Short Bond Funds." The website asks, "With yields on sweep accounts, money-​market funds and savings accounts stuck near historical lows, what'​s an adviser to do in trying to garner more income for clients out of their cash reserves?" They explain, "Ultra-​short-​term bond funds -- those with bonds of maturities three years or less -- are one option." The piece comments, "The average sweep account yield was only 0.​14 percent as of March 23 for accounts of $​100,​000, according to Crane Data, with money-​market yields averaging 1.​24 percent. And savings accounts averaged a yield of only 0.​09 percent as of March 30, according to Bankrate. Meanwhile, ultra-​short-​term bond funds had an average yield to maturity of 2.​2 percent, as of March 27, according to Morningstar Direct. Morningstar counts 91 ultra-​short-​term bond funds (​including ETFs) in total, with combined assets of $​162 billion." The article adds, "But you and your clients must understand that while ultra-​short bond funds are less risky than their longer-​term brethren, they are riskier than money-​market funds. That'​s because when short-​term interest rates rise, such as now, the share price of an ultra-​short bond fund falls, potentially wiping out the yield."

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