Many investors are likely considering options to add some stability to portfolios right now. Few investment categories offer as much ballast as Treasury funds can. Backed by the U.S. government, Treasurys in a Treasury ETF can boost fixed income allocations amid some notable uncertainty. The Treasury ETF TBIL has benefited from that growing interest, with its AUM rising past $5 billion in just 30 months of operation.
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The U.S. Treasury 3 Month Bill ETF (TBIL ) from F/m Investments arrived on the scene as one of 10 Treasury ETFs in the U.S. Benchmark Series. TBIL charges a 15 basis point fee to track the ICE BofA US Treasury Bill 3 Month Index. Intriguingly, its approach sets it apart from other Treasury ETF funds. The strategy only holds on-the-run 3-month U.S. T-bills, and no other type of bond. That category stands out as the most recently issued and the most liquid.
Treasury ETF TBIL Reaches New Heights
At the start of a given month, the fund purchases a single issue to be held for a full month. Additionally, at the end of each month, the issue is sold to fund a newly issued Treasury.
“TBIL assets crossing the $5 billion mark – and continued strong growth for the entire US Benchmark Series – confirms our thesis that investors want and need simplified, transparent, tax-efficient access to US Treasury securities,” said Alexander Morris, CEO of F/m Investments.
The Treasury ETF recently welcomed a new ETF to the firm’s roster. The F/m Ultrashort Treasury Inflation-Protected Security ETF (RBIL), focuses on ultrashort duration TIPS. In addition, the fund itself has reached more than $60 million in the first two weeks since its launch, according to the firm.
“RBIL enters the market as a natural extension to our US Benchmark Series, offering the same ETF-easy access to US Treasuries with the added feature of purchase power protection in this era of rising inflation concerns," Morris added.
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