GSAM launches new ETF in short-term US Treasury market
Goldman Sachs Asset Management claims to have launched the first ETF to offer same-day settlement of creations and redemptions in the short-term US Treasury market.
Named GBIL, the fund began trading on the NYSE Arca on Thursday with $20m in assets with a 14 basis points (bps) cost to investors.
It seeks to track the Citi US Treasury 0-1 Year Composite Select Index, which is designed to measure the performance of US Treasury obligations with a maximum remaining maturity of one year.
“We wanted our first fixed-income ETF to provide investors a low cost way to obtain the credit quality and income they look for in the Treasury markets, but with greater transparency and ease of use.”
Christina Kopec, head of product strategy for global fixed income, added that she expects ETFs will continue to become a preferred vehicle for Treasury investing given the unprecedented level of demand for Treasuries as a result of recent regulation.
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