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Hi fellow dividend lovers!

Lately, this “new” short duration bond ETF has been getting a lot of attention — and it’s not hard to see why. Interest rates on savings accounts like UOB One and OCBC 365 have been dropping, and investors are now wondering: where else can I park my cash and still get a decent yield?

One of our own ‘The Dividend Uncle’ channel members asked me about this too, so I thought — okay, time to share my views on this. Now, many other YouTubers have already gone through the details of this LionGlobal Short Duration Bond ETF, so I won’t repeat what you’ve already seen. Instead, I want to focus on the most useful comparisons in my personal analysis, and share how I see this fund fitting — or not fitting — into our purposes as dividend investors.

But first, let me remind you that this post is for informational purposes only and not financial advice. Always do your own research and consult a licensed financial adviser before making any investment decisions. I own some of the investments discussed, but what works for me might not work for you.

Alright, let’s get started!

Key Facts About the Fund

Let me just ground us with a few key facts before we dive into the analyses. The LionGlobal Short Duration Bond Fund Active ETF, to be listed on SGX under the ticker SBO in Singapore dollars, invests mainly in short-term bonds with an average duration of about two and a quarter years. The bonds are generally investment grade, with an average rating around ‘A minus’. The idea is to keep the fund’s sensitivity to interest rate moves relatively low, while still delivering a stable stream of income.

At the moment, the portfolio’s yield-to-maturity is about 3.2%, which is a good guide for what you might expect over the shorter term. For perspective, the unit trust version of the same fund has recently paid distributions that worked out to a trailing yield of around 3.5%. 

Of course, that’s partly backward-looking, since it reflects bonds bought in a slightly higher interest rate environment. Still, it gives a sense of the ballpark. Management fees are kept at 0.25% per year, and distributions are intended to be paid quarterly.

ETF vs The Unit Trust Version

So, this ETF is not really a brand new strategy. The LionGlobal Short Duration Bond Fund has been around as a unit trust for years. The ETF is simply a new share class, designed for SGX trading.

So what’s the difference? Mainly cost and convenience. The unit trust A class has a fee of 0.5%, versus 0.25% for the ETF. The ETF gives you intraday tradability, while the unit trust prices once daily. You can probably get the proceeds from selling off the ETF faster than when selling off the unit trust, but only by a few days. There will still be a wait – so keep in mind that this is still not instant liquidity. 

Performance-wise, it’s the same portfolio — so the returns should be very similar after fees. For me, the ETF simply gives more flexibility if you like buying and selling directly on SGX.

Comparison with Money Market Funds

When I compare the LionGlobal Short Duration Bond ETF against money market funds, one of the first things I look at is: what yields are money market funds offering now, so we can see what we’re giving up or gaining. As of early September 2025, some of the money market funds in Singapore like Fullerton SGD Cash Fund and LionGlobal SGD Money Market and Enhanced Liquidity funds are projecting yields in the range of about 2% to 2.5% per year. 

Now compare that with what the LionGlobal Short Duration Bond ETF is offering: yield-to-maturity around 3.2%, and trailing distributions recently implied closer to 3.5%. The extra yield is coming from holding slightly longer maturity bonds, plus corporate credit exposure, so you get paid more, but you also take on a bit more risk.

On the flip side, Money Market Funds win on stability and liquidity. Their N.A.V. are very stable, they rarely dip, and you can typically pull money out very quickly. With the short-duration bond ETF, there’s more risk of price movement, especially if interest rates move up, or credit spreads widen.

So if your priority is low volatility and super reliable liquidity, Money Market Funds are still very compelling. But if you’re okay with small fluctuations and want more yield, the bond ETF pulls ahead.

Comparison with Endowus Cash Smart Ultra

I also want to touch on Endowus Cash Smart Ultra, because this is something I personally put my money in. Ultra is structured as a mix of money market funds and short duration bond funds, and in fact, one of its components is the unit trust version of this very same LionGlobal Short Duration Bond Fund. 

When I first started using Ultra, the projected yield was around 3.1%, but today the maximum projected yield is only about 2.8%. That’s lower than what the LionGlobal ETF is showing right now, and it makes sense, because Ultra is a blended product. The money market funds inside bring down the overall yield, but they also add more stability and liquidity. 

So really, Ultra gives you a smoother, more cash-like profile, while the ETF gives you a bit more yield because it leans fully into short duration bonds. But take note that with the ETF, you are basically moving into the realm of bonds – the risks are higher, so it’s not really cash equivalent anymore. 

Comparison with PIMCO GIS Low Duration Income Fund (SGD-Hedged)

Another useful comparison is with the PIMCO Short Duration Income Fund, the SGD-hedged share class that’s available on the Endowus platform. Like the LionGlobal ETF, it’s also a short duration strategy, but it has a more global flavour. PIMCO invests across a wide range of sectors and geographies, with about 74% of exposure in the US, 6% in the UK, and 5% in Ireland, alongside smaller positions in other developed markets. 

The idea is to diversify income streams while still keeping the overall interest rate sensitivity low. It provides a more attractive yield to maturity of about 7.4% currently, but before adjustments for the cost of SGD hedging. The year-to-date returns in SGD is about 5% so far.  

An important detail is that this share class is hedged to SGD, so it’s designed to mitigate currency risk for Singapore investors. But hedging is not perfect — costs and slippage can eat into returns, and if there are sharp FX moves, the hedge may not fully protect you in the short term. So while it reduces volatility from the US dollar and other currencies, it doesn’t make the fund risk-free.

In terms of costs, the PIMCO fund is pricier. After platform fees, you’re looking at more than 0.5%, versus 0.25% for the LionGlobal ETF. 

So if you’re deciding between them, it really comes down to what you want: the LionGlobal ETF is lower cost, straightforward, and SGD-focused; PIMCO is higher cost, more global, and may offer more diversification across geographies, but it also brings in extra moving parts like hedging costs and more complex credit exposures.

Outlook on Yield Going Forward

So after looking at all these comparisons, what can we realistically expect going forward? Right now, money market funds in Singapore are yielding somewhere between about 2% to 2.5%. Endowus Ultra, which mixes Money Market Funds and short duration funds, is at a maximum projected yield of around 2.8%. The LionGlobal Short Duration Bond ETF is a little higher, with its current portfolio yield-to-maturity at about 3.2%. And then there’s the PIMCO Short Duration Income Fund, SGD-hedged, with yield-to-maturity at 7.4%, before higher fees and cost of hedging, for a more global, complex portfolio.

But it’s important to remember that the LionGlobal ETF’s 3.2% number is partly backward-looking, reflecting bonds that were bought when rates were higher. As the portfolio gradually reinvests into new bonds at today’s lower yields, the distribution will drift down toward the 3% mark, and could even slip into the high 2% if interest rates keep easing. 

The good news is that the adjustment happens more slowly than in money market funds, which tend to reset almost immediately when rates fall. That’s why short duration funds are sometimes called a good middle ground — they still give you yield stability in the near term, even as the environment shifts.

And here’s the practical part: if over time the yields from this ETF fall to levels that are no longer attractive, there’s no need to be stuck. We can always choose to sell and rotate the cash into something else. Which brings me neatly to the next question I often get — what happens if you sell before the distribution date?

If You Sell Before Distribution

Now, let’s talk about what happens if you decide to sell before the distribution date. Some people worry that they might lose out on the income if they don’t hold through the payout. But the way these funds work is that the income is always accruing inside the N.A.V.. If you sell before the ex-date, you won’t receive the cash distribution, but your sale price will be a little higher because it already reflects the income that’s been earned up to that point.

On the other hand, if you hold through the distribution, you’ll receive the cash payout, but the ETF price will drop by about the same amount once it goes ex-distribution. Economically, it works out the same — you’re still capturing the yield either way. It’s just a question of whether it shows up as part of your sale proceeds or as a separate cash payout.

By the way, if you’re finding this breakdown useful to you, do help me out by giving this post a like. It tells me that this kind of comparison content is valuable, and every single like encourages me to keep sharing my personal analyses with you. Alright, let’s jump back in. 

The Dividend Uncle’s Take

So here’s my honest take. For me, this ETF is first and foremost a liquidity management tool. It’s not a stock IPO where you rush in because you expect the price to jump overnight. The N.A.V. is designed to be steady, and the yield is what you’re really here for. I see it as a good place to park excess cash that I don’t immediately need, and let it work a little harder than leaving it in the bank.

That said, you should also remember the practical side of liquidity. Even though the ETF trades daily on SGX, the settlement still takes a couple of days. So it’s not like pulling money straight out of a savings account. If you need cash instantly, you’ll want to keep that in the bank. But for funds you might only need in a few months’ time, this could be a useful middle bucket.

And honestly, I find the hype around this ETF quite interesting — because the strategy itself isn’t new. The unit trust version of this LionGlobal Short Duration Bond Fund has been around for years, quietly chugging along. The main difference now is that it comes as an ETF, and while that gives you tradability on SGX, the actual liquidity period is not that much shorter than redeeming the unit trust. So don’t think of it as a magic “instant cash” tool; it’s more about convenience and lower fees.

For myself, I’ll be putting some cash here, and considering shifting a portion from my Endowus Ultra into this ETF, because the management fee is lower by about 0.15% to 0.2% per year. And for a lower yielding investment, this makes a lot of difference. Of course, the risks are slightly different — Endowus Ultra blends in money market funds for extra stability, while the ETF is fully in short duration bonds. Still, for the part of my cash that I don’t need immediately, the lower cost and direct exposure make sense. 

At the same time, I’m keeping in mind that the yield will gradually trend down if rates keep easing. Once it falls to a level I’m no longer comfortable with, I’ll rotate out and move the money elsewhere. So I’m treating this as a steady liquidity management tool, not chasing it like a hot new IPO. The ETF wrapper is slightly more convenient and cheaper, but it doesn’t change the underlying fund, which has been around for years. That’s why I see it as useful, but not something to hype over — just a practical way to make excess cash work a bit harder.

And that’s my honest view on the LionGlobal Short Duration Bond ETF. Simple, practical, and no hype. If you’ve been considering it, hopefully this helps you decide whether it fits your own liquidity planning.

Now, I’d love to hear your take: would you consider shifting some of your savings into this ETF, or are you sticking with money market funds and cash? Drop a comment and let me know.