DWS has expanded its fixed income ETF range with the launch of a short-duration US Treasuries strategy, ETF Stream can reveal.
The Xtrackers US Treasuries Ultrashort Bond UCITS ETF (XT0D) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.07%.
Tracking the FTSE US Treasury Short Duration index, XT0D offers investors exposure to 67 fixed-rate and floating rate US Treasury securities and T-bills.
The index has a maximum maturity of three years for floating rate and one year fixed-rate US Treasury securities.
Defining and exploiting value in US Treasury bonds
Olivier Souliac (pictured), head of passive index strategy and analytics at DWS, commented: “We aim to offer our clients a full range of fixed income exposures to meet all their asset allocation needs.
“XT0D, which offers long US Treasury bond exposure but with ultrashort duration risk, provides investors with a low interest rate risk but improved yield alternative to cash.”
This is the second short-duration ETF DWS has launched in the last two months. In July, ETF Stream revealed the German asset manager unveiled the Xtrackers ESG EUR Corporate Bond Short Duration UCITS ETF (XZE5).