The Arrow Reserve Capital Management ETF is an actively managed exchange-traded fund that seeks to balance capital preservation with current income through a conservative ultra-short-term fixed-income strategy, rather than mechanically tracking a specific index.

It may be suitable for investors who want broader bond opportunities than cash equivalents but wish to lower the interest rate sensitivity associated with longer-duration bonds.

It is an actively managed ETF run by Arrow Investment Advisors.

This fund primarily invests in U.S. investment-grade fixed-income securities and seeks interest income opportunities while taking credit risk and maturity conditions into account. It may use futures and forward contracts as needed for interest rate risk management or exposure to specific asset classes.

• Conservative management centered on ultra-short maturities
• Flexible tools that can be used for interest rate risk management

Assets under management (AUM) stand at $51.1M, with a total expense ratio of 0.50% per year.

Ultra-short-term bond funds may be relatively less affected by interest rate changes than longer-duration bond products, but the manager's investment decisions and the credit risk of underlying holdings need to be evaluated separately. This fund is not structured identically to a money market fund, so its risk level should not be judged on the same basis.

� Arrow Reserve Capital Management ETF Performance and Flows

The fund's performance depends on short-term rate levels, credit spreads, and the interest income of its underlying bonds. A capital-preservation-first design aims to reduce volatility, but the interest rate path and changes in the credit environment can still affect net asset value.

Demand for cash alternatives or short-term bond allocation can shift with the interest rate environment and changes in risk appetite. This fund can be an option for capital seeking conservative bond exposure, but trading conditions, costs, and the irregular nature of distributions should also be reviewed.

A conservative design centered on ultra-short investment-grade bonds is a strength, but credit and interest rate risk, along with an irregular distribution history, are factors to watch.

The BNDX ETF shown in the table offers broad diversification centered on international bonds. The IUSB ETF takes an approach that spans U.S. dollar-denominated bonds overall. The BINC ETF can be compared as it is an actively managed bond strategy. The PYLD ETF offers a management approach that spans multiple bond sectors. The JCPB ETF provides core-plus bond exposure, so it is worth noting that the ARCM ETF places greater emphasis on ultra-short-term investment-grade bonds and capital preservation. Comparable listed-fund information within this table is limited.

Before adding the Arrow Reserve Capital Management ETF to a portfolio, investors should review fees and trading conditions, interest rate sensitivity, and the irregular nature of distributions together. The ultra-short-term bond classification alone should not be taken to mean the fund carries the same risk level as cash equivalents.

Even within an investment-grade-focused portfolio, interest rate movements and changes in issuer credit conditions can affect net asset value. The use of derivatives can serve as a risk management tool, but it does not guarantee that results will always match expectations.

The Arrow Reserve Capital Management ETF is structured as an actively managed ultra-short-term fixed-income fund. Investors considering it as a cash alternative should compare not only interest income but also trading conditions, costs, interest rate and credit risk, and its irregular distribution history.

A conservative design centered on ultra-short investment-grade bonds is a strength, but credit and interest rate risk, along with an irregular distribution history, are factors to watch.

The BNDX ETF shown in the table offers broad diversification centered on international bonds. The IUSB ETF takes an approach that spans U.S. dollar-denominated bonds overall. The BINC ETF can be compared as it is an actively managed bond strategy. The PYLD ETF offers a management approach that spans multiple bond sectors. The JCPB ETF provides core-plus bond exposure, so it is worth noting that the ARCM ETF places greater emphasis on ultra-short-term investment-grade bonds and capital preservation. Comparable listed-fund information within this table is limited.

Before adding the Arrow Reserve Capital Management ETF to a portfolio, investors should review fees and trading conditions, interest rate sensitivity, and the irregular nature of distributions together. The ultra-short-term bond classification alone should not be taken to mean the fund carries the same risk level as cash equivalents.

Even within an investment-grade-focused portfolio, interest rate movements and changes in issuer credit conditions can affect net asset value. The use of derivatives can serve as a risk management tool, but it does not guarantee that results will always match expectations.

The Arrow Reserve Capital Management ETF is structured as an actively managed ultra-short-term fixed-income fund. Investors considering it as a cash alternative should compare not only interest income but also trading conditions, costs, interest rate and credit risk, and its irregular distribution history.