Goldman Sachs added a ultra-low-duration Treasury bond exchange traded fund in what may be a suitable alternative for investors seeking to park their cash.
On Thursday, Goldman Sachs launched the Goldman Sachs Treasury Access 0-1 Year ETF (NYSEArca: GBIL). GBIL comes with a 0.14% expense ratio.
“The bond trading environment has become more complicated. We wanted our first fixed-income ETF to provide investors a low cost way to obtain the credit quality and income they look for in the Treasury markets, but with greater transparency and ease of use,” Michael Crinieri, GSAM’s Global Head of ETF Strategies, said in a note.[related_stories]
GBIL will try to reflect the performance of the Citi US Treasury 0-1 Year Composite Select Index, which is comprised of U.S. Treasury Obligations with a maximum remaining maturity of 12 months. U.S. Treasury obligations refer to securities issued by the U.S. Treasury where payment of principal and interest is backed by the U.S. government. The fund h as an effective duration of 0.40 year.