Top Performing Ultrashort Bond Funds: BBH Limited Duration, Federated Hermes Ultra Short Bond, Janus Henderson Short Duration Income ETF, and Morgan Stanley Pathway Ultra-Short Term Fixed Income

Four top-performing ultrashort bond funds, according to Morningstar analysts, are BBH Limited Duration BBBIX, Federated Hermes Ultra Short Bond FULLX, Janus Henderson Short Duration Income ETF VNLA, and Morgan Stanley Pathway Ultra-Short Term Fixed Income TSDUX. These funds have outperformed the Morningstar US Core Bond Index, with returns of 4.98%, 5.27%, and 3.09% over the past 12 months, three years, and five years, respectively. Ultrashort bond funds invest in short-term, low-risk fixed-income issues with durations of less than one year.