Touchstone Ultra Short Income ETF

Touchstone Ultra Short Income ETF (TUSI) is an actively managed bond fund. It holds mostly investment-grade asset-backed securities, corporate bonds and other short-term debt, and aims to keep its sensitivity to interest rates at one year or less. It leans harder on structured products, such as bonds backed by auto loans and commercial mortgages, than many ultra-short peers. Its 0.25% expense ratio is above the 0.19% peer average.

• Over the year to Oct 27, 2026, TUSI returned +4.1%, 1st of 8 among similar funds.
• Its worst full calendar year was 2025 (+5.1%); its best was 2023 (+6.6%).
• The deepest fall in its price history was 0.4% (Sep 1, 2022 to Nov 8, 2022), recovered by Dec 1, 2022.

As of Jun 30, 2026, the fund held 237 securities; the ten largest made up 13.72% of assets, and 7.94% sat in cash and money-market holdings.

The bonds mature in 10.4 years on average (weighted by size), with an average coupon of 4.39%.

• Over the three months to Jun 30, 2026, investors added a net $164.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.37%, +0.36%, +0.28%.

TUSI does not track an index. Its sub-adviser, Fort Washington Investment Advisors, picks bonds it believes are attractively priced. That means bonds expected to pay more than they have in the past, or more than other securities with similar credit quality, liquidity and price swings. At least 80% of assets go into fixed-income securities. Most must be investment grade, meaning rated BBB-/Baa3 or higher when bought. Up to 15% can go into lower-rated "junk" bonds.

The prospectus says the fund puts extra weight on structured products. These are bonds backed by pools of loans, such as car loans, credit cards and commercial mortgages. As of June 30, 2026, other asset-backed securities made up 61.6% of the fund, bonds and notes 20.9%, and collateralized loan obligations 6.1%. The fund had 237 holdings, and the top 10 made up 13.7%. The largest was Alexandria Real Estate Equities commercial paper at 3.0%, followed by an Affirm Master Trust bond (1.3%) and a Westlake auto-loan bond (1.2%).

The main limit is effective duration, a measure of how much prices move when rates change. Fort Washington aims to keep it at one year or less. Average years to maturity was 10.4, but many structured bonds repay principal early, so their rate sensitivity can be far shorter than their stated maturity. Trading is active, with portfolio turnover of 101%. No derivatives were held as of June 30, 2026.

• TUSI charges 0.25% a year, versus an average of 0.19% for the similar funds below (6th of 8, cheapest first).
• Of that, 0.18% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.18% 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 $525 over 10 years (assuming a 5% annual return).

The fund keeps interest-rate sensitivity at one year or less and has had very small price swings, so it can act as a low-volatility place for cash set aside for near-term spending.

TUSI launched on August 4, 2022, so it missed the 2008 crisis, the 2020 crash and most of the 2022 bear market. Its deepest drop was 0.4%, from September 1 to November 8, 2022. It recovered by December 1, 2022, in less than a month. Every full calendar year has been positive, per the prospectus. The weakest was 2025 at 5.09%, and even its worst quarter gained 1.18%. For someone who may need to sell shares in a bad year, that record points to small, short dips. Still, the record is short and does not include a severe credit downturn. The fund paid a 4.46% trailing 12-month yield, distributed monthly, as of October 27, 2026. In the SEC's standard example, costs are $26 in year one on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).