The new bond ETF will try to reflect the performance of the ICE U.S. Treasury Short Bond Index, which is comprised of U.S. Treasury obligations with a maximum remaining term to maturity of 12 months. While the ETF may act as a cash alternative, CLTL is not a money market fund and does not maintain a stable asset value.

The underlying index excludes inflation-linked securities, floating rate notes, cash management bills, and any government agency debt issued with or without a government guarantee.

CLTL will be directly competing against he iShares Short Treasury Bond ETF (NYSEArca: SHV), which also tracks the same ICE U.S. Treasury Short Bond Index that serves as the underlying index for the new PowerShares ETF. However, CLTL comes with a more competitive 0.08% expense ratio, compared to SHV’s 0.15% expense ratio.

For more information on new fund products, visit our new ETFs category.