At a glance
RAVI charges 0.25% a year, above the 0.15% average of the 7 funds most like it (the most expensive of 8). It has $1.49B in assets, the 7th largest of that group; it paid 4.23% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.7% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.9% a year. At its worst it fell 3.7% in the 2020 crash (S&P 500: 33.7%) and 2.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 8 months after the lows. Its ten largest positions make up 15.3% of the fund, out of 244 in all.
The short version
FlexShares Ultra-Short Income Fund (RAVI) is an actively managed Northern Trust ETF. It holds short-term, investment-grade bonds, mostly issued by companies such as Walt Disney, Merck and Bank of America. It aims to earn more income than cash while keeping price swings small, and it pays monthly. Its 0.25% expense ratio is the highest among eight comparable ultra-short bond funds, where the average was 0.15%.
Price history
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RAVI +3.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| RAVI official prospectus, to Dec 31, 2025 | — | +4.95% | — | +3.22% | +2.59% | — |
| RAVI price data to Oct 27, 2026 | +2.9% | +3.7% | +4.9% | +3.8% | +2.8% | +2.7% |
- Over the year to Oct 27, 2026, RAVI returned +3.7%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +3.8% and its 10-year +2.8%.
- In the 2020 COVID crash it fell 3.7% and regained its old high 2 months after the low.
- Its worst full calendar year was 2021 (0.0%); its best was 2024 (+5.7%).
- The deepest fall in its price history was 3.7% (Mar 3, 2020 to Mar 20, 2020), recovered by May 21, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.9% | — |
| 2025 | +5.0% | +4.95% |
| 2024 | +5.7% | +5.68% |
| 2023 | +5.6% | +5.53% |
| 2022 | +0.2% | +0.14% |
| 2021 | -0.0% | -0.02% |
| 2020 | +2.1% | +2.04% |
| 2019 | +3.5% | +3.42% |
| 2018 | +1.7% | +1.83% |
| 2017 | +1.2% | +1.29% |
| 2016 | +1.7% | +1.20% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 3% over that stretch · deepest drop along the way 3.7%, back to its old high 2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.8% over that stretch · deepest drop along the way 2.9%, back to its old high 8.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.3200 | |
| 2025 | $3.4600 | -13.7% |
| 2024 | $4.0100 | +16.9% |
| 2023 | $3.4300 | +170.1% |
| 2022 | $1.2700 | +84.1% |
| 2021 | $0.6900 | -30.3% |
| 2020 | $0.9900 | -48.2% |
| 2019 | $1.9100 | +13.7% |
| 2018 | $1.6800 | +75.0% |
| 2017 | $0.9600 | +39.1% |
| 2016 | $0.6900 |
What's inside
As of Jul 31, 2026, the fund held 244 securities; the ten largest made up 15.31% of assets, and 4.95% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Walt Disney Co. (The) Bonds and notes | 2.60% | |
| Merck & Co., Inc. Bonds and notes | 1.85% | |
| Bank of America Corp. Bonds and notes | 1.62% | |
| Abbott Laboratories Bonds and notes | 1.55% | |
| AT&T, Inc. Bonds and notes | 1.53% | |
| Ingersoll Rand, Inc. Bonds and notes | 1.35% | |
| Royal Bank of Canada Bonds and notes | 1.34% | |
| Truist Bank Bonds and notes | 1.20% | |
| Chevron USA, Inc. Bonds and notes | 1.16% | |
| Sanofi SA Bonds and notes | 1.12% | |
| Amazon.com, Inc. Bonds and notes | 1.01% | |
| Reckitt Benckiser Treasury Services plc Bonds and notes | 0.99% | |
| Mizuho Financial Group, Inc. Bonds and notes | 0.97% | |
| Australia & New Zealand Banking Group Ltd. Bonds and notes | 0.96% | |
| Toyota Motor Credit Corp. Bonds and notes | 0.94% |
By country
United States 68.94%Canada 5.46%United Kingdom 5.04%France 4.52%Australia 3.79%By issuer
Companies 93.77%US Treasury 0.82%US government-sponsored enterprises 0.22%Foreign governments 0.18%The bonds mature in 3.4 years on average (weighted by size), with an average coupon of 4.38%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $91.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.36%, +0.31%, +0.31%.
How it works
RAVI does not track an index. Managers at Northern Trust Investments (NTI) pick the bonds. At least 80% of total assets goes into fixed-income securities from governments, agencies, municipalities, corporations and banks, in the US and abroad. Every bond must be investment grade when it is bought, meaning it is rated in the top four credit tiers. Up to 20% can go to emerging markets. No more than 10% can go to mortgage or asset-backed bonds that lack a government-agency guarantee.
The fund keeps interest-rate risk low. Duration measures how much a bond's price moves when rates change, and the fund's duration normally stays at one year or less. The Northern Trust Company Investment Policy Committee sets it based on its view of where rates are headed. The average maturity, weighted by dollar amount, is normally two years or less. The fund may use US Treasury futures to adjust duration. It uses currency contracts only for hedging. The July 31, 2026 holdings report showed no derivative positions.
As of July 31, 2026, the fund held 244 issues, and about 94% were company bonds. As of December 31, 2025, it was concentrated in the financial sector. Portfolio turnover was 68%. The fund creates and redeems shares in cash rather than in securities. That can force it to sell bonds and pass taxable capital gains on to shareholders. It may also lend out up to one-third of its assets.
What it really costs
- RAVI charges 0.25% a year, versus an average of 0.15% for the similar funds below (8th of 8, cheapest first).
- The fee includes a 0.01% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $330 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| RAVI | $26 | $83 | $145 | $330 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It holds short-term, investment-grade bonds with a duration normally under one year, so its price has moved only slightly even in market sell-offs.
RAVI could hold money a retiree expects to spend within the next year or two. Its deepest drop was 3.7%, from March 3 to March 20, 2020, and it recovered by May 21, 2020, about two months later. In 2022 it fell 2.9% between January and April and took about eight months to recover. The fund launched in 2012, so it has no 2008 record. Its weakest calendar year was 2021, at -0.02%. That means selling shares in a bad year has historically meant only a small loss. The trailing 12-month yield was 4.23% as of October 27, 2026, paid monthly, but that income will shrink if short-term rates fall. Cost is a drawback. At 0.25%, its expense ratio is the highest in its peer group, and the SEC's standard example puts costs at $330 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees setting aside one to two years of spending money who want monthly income and small price swings; the fund's deepest drop since 2016 was 3.7%.
- Investors seeking income with little interest-rate risk: duration normally stays under one year, and the trailing yield was 4.23% as of October 27, 2026.
- Those comfortable with active management and corporate credit, including foreign bank bonds such as Royal Bank of Canada and Mizuho, in exchange for higher income.
Look elsewhere if
- Cost-focused investors: at 0.25%, RAVI is the most expensive of eight comparable funds; Vanguard's VUSB charges 0.10% and iShares' ICSH 0.08%.
- Anyone wanting government-backed safety: US Treasuries were under 1% of holdings, about 94% was company debt, and the fund leaned toward financial-sector issuers.
- Investors seeking long-term growth or inflation protection: the fund's 10-year average annual return was 2.59% through December 31, 2025.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| RAVI this fund | 3.4 yrs | 0.25% | $1.49B | +3.7% | +4.9% |
| GSY Invesco Ultra Short Duration ETF | 3.5 yrs | 0.22% | $3.92B | +3.7% | +5.2% |
| VUSB Vanguard Ultra-Short Bond ETF | 2.8 yrs | 0.1% | $8.94B | +3.5% | +5.1% |
| GSST Goldman Sachs Ultra Short Bond ETF | 4.2 yrs | 0.16% | $1.64B | +3.9% | +5.3% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| TBUX T. Rowe Price Ultra Short-Term Bond ETF | 5.3 yrs | 0.17% | $1.51B | +4.0% | +5.5% |
| ICSH iShares Ultra Short-Term Bond Active ETF | 1.8 yrs | 0.08% | $8.14B | +3.5% | +4.9% |
| BKUI BNY Mellon Ultra Short Income ETF | 1.6 yrs | 0.12% | $574.7M | +3.5% | +4.9% |
Questions investors ask
Does RAVI pay monthly dividends?
Yes. RAVI pays income monthly. Over the 12 months to October 27, 2026, it paid about $3.18 per share, for a trailing yield of 4.23%. Because the fund holds short-term bonds that mature quickly, its payouts follow short-term interest rates. If rates fall, the fund has to reinvest at lower yields, so the monthly income would likely shrink. The prospectus lists this as income risk.
Can RAVI lose money?
Yes, though its losses have been small so far. Its deepest drop was 3.7%, in March 2020, and it recovered within about two months. Its worst quarter was the first quarter of 2020, at -1.32%, and it lost 0.02% in 2021. It is a bond fund, not a bank deposit or money market fund. It can lose value if interest rates rise, if a borrower defaults or if credit markets come under stress.
What's the difference between RAVI and GSY?
Both are actively managed ultra-short bond ETFs with a similar mix of issuers. Invesco Ultra Short Duration ETF (GSY) is the closest match among the funds compared. GSY costs 0.22% against RAVI's 0.25%, and it is larger, at about $3.9 billion against $1.5 billion. As of October 27, 2026, both returned 3.7% over one year. Over three years, GSY returned 5.2% a year against RAVI's 4.9%.
How has RAVI performed over the long term?
Its returns have been modest and steady. According to the prospectus, RAVI's average annual return was 4.95% over one year, 3.22% over five years and 2.59% over ten years, all through December 31, 2025. It returned 5.53% in 2023, 5.68% in 2024 and 4.95% in 2025, when short-term rates were higher. Earlier years were lower, including 0.14% in 2022. Based on price, it returned 3.7% over the year to October 27, 2026.
Is RAVI a good place to park cash in retirement?
It may suit retirees who want money set aside for near-term spending to earn more than a bank account, with small price swings. Duration normally stays under one year, and income arrives monthly. The trade-offs are corporate credit risk, a tilt toward financial-sector issuers and the highest expense ratio in its peer group, at 0.25%. Cash creations and redemptions can also trigger capital gains distributions in a taxable account.