Goldman Sachs Asset Management (GSAM) has launched the first exchange-traded fund (ETF) to offer same-day settlement of creations and redemptions in the short-term US Treasury market.
Dubbed GBIL, the fund started trading on the NYSE Arca on 8 September 2016 with $20m in assets.
It will be jointly managed by the asset manager’s Liquidity Solutions team and its Quantitative Investment Strategies team.
The fund seeks to track the Citi US Treasury 0-1 Year Composite Select Index, which is designed to measure the performance of US Treasury Obligations with a maximum remaining maturity of one year.
GSAM global head of ETF strategies Michael Crinieri said: "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.”
Christina Kopec, head of product strategy for global fixed income, said: “We believe ETFs will continue to become a preferred vehicle for Treasury investing given the unprecedented level of demand for Treasuries as a result of recent regulation.”