Global X Launches Short-Term Treasury ETF
Exchange-traded funds (ETFs) provider Global X ETFs launched the Global X 1-3 Month T-Bill ETF (CLIP), which provides investors with exposure to short-term US Treasuries. CLIP is listed on the New York Stock Exchange.
The ETF is benchmarked to the Solactive 1-3 month US T-Bill Index and has a 0.7% expense ratio.
Yields at the short end of the curve have risen sharply over the past 18 months as the Federal Reserve has aggressively raised interest rates to combat inflation, which has dramatically inverted the curve. Short-term interest rates had also gotten a boost leading up to the debt ceiling deadline.
Rohan Reddy, Global X Director of Research, said CLIP offers “critical access to the front end of the Treasury curve.”
Treasury bills can provide investors with income potential while carrying relatively low interest rate risk due to their short-term nature. CLIP offers investors the benefit of these short-term instruments in the form of a transparent and cost-effective ETF wrapper.
CLIP is part of Global X expanding its lineup of ETFs in recent months. Last month, the firm listed the Global X Carbon Credits Strategy ETF (NTRL). It also completed the conversion of two mutual funds into two actively managed emerging markets ETFs: the Global X Emerging Markets Great Consumer ETF (EMC) and the Global X Emerging Markets ETF (EMM).
