New Listing

State Street launches ultra-short-dated Treasury ETF

Tom Eckett

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State Street Global Advisors (SSGA) has expanded its fixed income range with the launch of a short-dated Treasury ETF.

The SPDR Bloomberg Barclays 1-3 Month T-Bill UCITS ETF (ZPR1) is listed on the Deutsche Börse with a total expense ratio (TER) of 0.10%.

Physically replicated, ZPR1 is the only physical UCITS ETF to track the Bloomberg Barclays 1-3 Month U.S. Treasury Bill index.

The firm said ZPR1 would be useful for investors looking to protect themselves against the backdrop of slowing growth and escalating trade tensions between the US and China.

Furthermore, as the yield curve begins inverting, short-dated Treasuries offer a better yield than longer duration bonds.

In London, it’s raining bonds

Antoine Lesne, head of SPDR ETF strategy and research at SSGA, commented: “The ETF can be used as a strategic portfolio building block, providing exposure to short-dated US Treasury bills.

“Alternatively, it can be used to make tactical characteristic adjustments to an investor’s overall portfolio – which could include reducing the overall duration of a bond portfolio and/or increasing its credit quality. In addition, ZPR1 can help with cash and liquidity management.”

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