RAVI
FlexShares Ultra-Short Income Fund
📎 Investment Objective
The FlexShares Ultra-Short Income Fund (RAVI) seeks to provide a high level of current income consistent with preservation of capital and daily liquidity.
Overview
ETF tracking FlexShares Ultra-Short Income Fund
Performance
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Investment Summary
📎 Investment Objective
The FlexShares Ultra-Short Income Fund (RAVI) seeks to provide a high level of current income consistent with preservation of capital and daily liquidity.
🎯 Investment Strategy
RAVI invests primarily in a diversified portfolio of short-duration fixed income securities, including U.S. government securities, corporate bonds, and mortgage-backed securities. The fund aims to maintain a weighted average effective duration of one year or less to limit interest rate risk.
✨ Key Features
- Focuses on short-term, high-quality fixed income securities to generate current income
- Maintains a weighted average effective duration of one year or less to reduce interest rate sensitivity
- Designed to provide stability and liquidity for investors seeking a low-risk, cash-like investment
- Expense ratio of 0.00% makes it a low-cost option for short-term fixed income exposure
⚠️ Primary Risks
- Interest rate risk: The fund's value may decline if interest rates rise, as the prices of existing bonds fall
- Credit risk: The fund is exposed to the risk of default or downgrade of the underlying fixed income securities
- Liquidity risk: The fund may have difficulty selling certain securities, particularly in times of market stress
- Reinvestment risk: When interest rates fall, the fund may have to reinvest coupon payments or matured securities at lower rates
👤 Best For
RAVI may be suitable for investors seeking a low-risk, cash-like investment to preserve capital and generate current income, particularly those with a short-term investment horizon or as a component of a diversified portfolio.