F/m Investments has announced the launch of five new single-bond ETFs, completing the full suite of offerings within the US Benchmark Series.
The five new ETFs are:
US Treasury 30 Year Bond ETF (Ticker: UTHY)
US Treasury 20 Year Bond ETF (Ticker: UTWY)
US Treasury 7 Year Note ETF (Ticker: USVN)
US Treasury 5 Year Note ETF (Ticker: UFIV)
US Treasury 3 Year Note ETF (Ticker: UTRE)
F/m writes that the US Benchmark Series is a family of US Treasury ETFs designed to simplify access to the US Treasury market. Each ETF holds the most current (“on the run”) US Treasury security that corresponds to its tenor. The first five ETFs in the Series (TBIL; XBIL; OBIL; UTWO; UTEN) have raised a total of more than USD1 billion in the eight months since launch, and the firm writes that this emphasises the market’s need and desire for such a product line.
The US Benchmark Series aims to address under-performance of investor expectations by existing products in the marketplace, specifically regarding duration management, the firm says. “These single security Treasury ETFs are designed for precise duration management, regardless of investors’ individual views on rates. In an era where Fed announcements are engrained in mainstream media, every investor now has a full set of tools to manage duration.”
“These ETFs have proven to work well on the short end of the yield curve, and the additional five we’re launching today will allow investors to access, in the same efficient manner, 10 distinct points along the curve,” says Alexander Morris, F/m’s President, CIO, and Co-Creator of the US Benchmark Series. “Considering the current macro-economic environment, investors are asking for these tools for precise duration management for their portfolios as the yield curve normalises over time.”
Lead market maker for the new ETFs will be Jane Street Capital, which is the lead market maker for the original five ETFs of the US Benchmark Series. The five new ETFs, like the original five in the Series, will be listed on the NASDAQi and housed with The US Benchmark Series’ current series trust provider, The RBB Fund, Inc.