“ETF to provide a same-day creation and redemption capability, offering the potential for faster access to liquidity,” according to Goldman Sachs. “We believe this benefit enhances the versatility of the fund, offering a wider range of potential applications for investors who may need more timely access to cash.”
Current holdings include US Govt 0.625% 15 Oct 2016 20%, US Govt 0.5% 30 Nov 2016 15.5% and US Govt 0.75% 15 Jan 2017 11.9%. It’s top ten holdings make up a large 98.1% of the overall portfolio.
SEE MORE: Treasury Bond ETFs Strengthen Despite Hawkish Fed Comments
The ETF is also the first to offer same-day settlement of creations and redemptions in the short-term U.S. Treasury market, according to Goldman Sachs. GBIL allows liquidity providers or so-called authorized participants to create or redeem shares and settle within hours instead of days.
“This innovation adds to the standard intraday trading ease of ETFs and can therefore broaden the range of investment applications,” according to Goldman Sachs.
For more information on new fund products, visit our new ETFs category.