Global X has launched its first fixed income ETF in Europe, an ultrashort US Treasury strategy.
The Global X 1-3 Month T-Bill UCITS ETF (CLIP) is listed on the London Stock Exchange and Deutsche Boese with a total expense ratio (TER) of 0.07%.
CLIP tracks the Solactive 1-3 Month US T-Bill index which offers exposure to ultrashort US Treasuries, offering a highly liquid, interest-bearing alternative to cash.
The asset manager said the ETF is an attractive option for investors seeking to minimise credit and interest rate risk.
However, there are signs investors are looking to extend duration in their portfolios as many bet on peaking interest rates
In the same month, Global X CEO decided to step down after almost a decade at the $39bn ETF issuer.
He was replaced by interim CEO Thomas Park who is a Global X board member and co-CEO of the US arm of parent company Mirae Asset Global Investments.