T. Rowe Price Files Short Duration Income ETF (TSDI) with Up to 35% High-Yield Exposure

T. Rowe Price has filed for the T. Rowe Price Short Duration Income ETF (TSDI), an actively managed fixed income fund designed to generate income while limiting principal volatility and maintaining liquidity. The ETF will invest at least 80% of its assets in fixed income securities, including investment-grade corporate bonds, mortgage-backed securities, asset-backed securities, and collateralized loan obligations (CLOs). It may allocate up to 35% to below-investment-grade debt, including high-yield bonds and leveraged loans, alongside international and emerging market debt. The fund will maintain an effective duration of three years or less and may use derivatives to manage risk. TSDI is expected to absorb the T. Rowe Price Short Duration Income Fund through a tax-free reorganization around June 25, 2027