SDSI ETF posts 5.73% yield to maturity, 4.4% return

American Century Investments’ active Short Duration Strategic Income ETF (SDSI) posted a 5.73% yield to maturity, a 4.74% 12‑month distribution rate and a 4.4% total return over the past 12 months, according to American Century data as of June 30. The fund launched in 2022 and carries an expense ratio of 0.32%.

SDSI is managed as a core‑plus income strategy that targets short‑duration fixed income. The fund holds collateralized debt obligations, preferred stocks, bank loans and asset‑backed securities. Managers may use derivatives such as swaps to supplement income.

Portfolio exposures are adjusted based on economic indicators and interest‑rate expectations. The short‑duration positioning aims to limit sensitivity to interest‑rate moves while seeking higher income than a typical core bond allocation.

The ETF wrapper offers intraday tradability and may be more tax‑efficient for some taxable accounts than comparable mutual funds. American Century reports the yield and distribution figures cited above as of June 30.

The strategy involves manager risk and exposure to non‑investment‑grade credit. Holdings such as CDOs and bank loans carry credit and liquidity risks, and use of derivatives can add counterparty or leverage risk.

Investors evaluating SDSI should consider how its credit mix, use of derivatives and the 0.32% fee would interact with their existing bond allocations and income needs.