Bringing you live news and features since 2006 

Invesco launches low-cost ETF in Europe for exposure to shortest end of US Treasury Bond market

RELATED TOPICS​

Invesco has broadened its USD2.3 billion range of US Treasury Bond ETFs with the launch of a fund focused on securities at the shortest end of the maturity curve. The Invesco US Treasury Bond 0-1 Year UCITS ETF aims to deliver the performance of the Bloomberg Barclays US Treasury Coupons Index and, with an ongoing charge of 0.06 per cent per annum, is the lowest-cost ETF in Europe for exposure to that index.

 
Paul Syms, Head of EMEA ETF Fixed Income Product Management at Invesco, says: “The Federal Reserve said in its final policy meeting of 2019 that US interest rates were likely to stay on hold for a time, but markets seem to be discounting some future easing. The resultant flattening of the US yield curve means the additional interest-rate risk that comes with investing in longer-dated bonds looks less attractive than it did a year ago. As a result, we believe investors may wish to consider bonds nearer to maturity.”
 
The index comprises US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with maturities of at least one month and no more than 12 months. The index rebalances monthly and excludes Treasury bills, inflation-linked bonds, floating-rate bonds and STRIP bonds (where the principal and regular coupon payments have been removed and are sold separately to investors as new securities).

Invesco launched the first of its range of US Treasury Bond ETFs in January 2019. The fund focussing on the 7-10 year segment attracted net new assets of more than USD2 billion by the end of the year, making  it the firm’s most successful ETF launch in Europe.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Thomas Bonville, Clear Street
Just over a year ago, Thomas Bonville joined New York-based, prime brokerage Clear Street as managing director, head of derivative...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by