Like easy? Launched earlier in the month, sole and institutional investors will experience an easier process to trade the most current benchmark U.S. Treasuries thanks to a new series of exchanged traded funds, according to reuters.com. It sheds on the maturing ETFs within the fixed income terrain.
While treasuries, of course, are among the bevy of the world’s most liquid securities, particularly for investors who need to frequently roll them over to sustain the maturity, trading them can be plodding.
"This gives (investors) a tool to say, we really want to focus on how we execute our investment strategy, as opposed to how effectively we trade Treasury bonds," said F/m President Alex Morris.
The new ETFs, which will eventually include more maturities, as well as options, will make it easier for people managing bond portfolios in a precise way, said Dave Nadig, director of research at ETF Flows.
"I put this in the category of sharp tools in the drawer," he said. "For most investors, I don't think it's relevant. For investors that need this product, it's a godsend."
Meantime, it’s largely been coming up roses for fixed income ETFs. Their ranks have swelled, piquing the interest of fresh investors, according to thestreet.com.
And talk about a high ceiling. Last month, the ETF industry hit a worldwide high of $862 billion in assets under management, shattering records. As of July 31 in this country, 706 ETFs from 22 providers drew $582 billion.