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.
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GBIL is part of Goldman’s growing suite of fixed income ETFs, which recently added the smart beta Goldman Sachs Access Investment Grade Corporate Bond ETF (NYSEArca:GIGB). GIGB comes with a 0.14% expense ratio.
GIGB tracks the Citi Goldman Sachs Investment Grade Corporate Bond Index and only holds bonds with at least one year to maturity and a minimum rating of BBB-. GIGB also applies a fundamental screen to measure issuers by operating margin and leverage.
For more on fixed income ETFs, visit our Fixed Income category.