State Street Investment Management today announced the expansion of its low-cost State Street SPDR Portfolio ETF Suite with the launch of the State Street SPDR Portfolio Ultra Short T-Bill ETF (SPTU).
The new fund offers investors access to the shorter end of the yield curve by providing exposure to US Treasury bills that have a remaining maturity greater than or equal to 1 month and less than 12 months. Priced at just five basis points, SPTU is one of the lowest-cost ETFs in the ultra-short Treasury bond fund category.
With the addition of the State Street SPDR Portfolio Ultra Short T-Bill ETF, which seeks to track the performance of the ICE BofA US Treasury Bill Index, the State Street SPDR Portfolio US Treasury suite provides investors with exposure to a full spectrum of maturities across the yield curve.
Funds in the low-cost State Street SPDR Portfolio Treasury suite include SPDR Portfolio Short Term Treasury ETF (SPTS), SPDR Portfolio Intermediate Term Treasury ETF (SPTI), SPDR Portfolio Long Term Treasury ETF (SPTL), and SPDR Portfolio Treasury ETF (SPTB).
“Whether it’s in response to changes in Federal Reserve policy, inflation expectations, economic forecasts, or liquidity needs, ETFs allow investors to fine-tune their fixed income allocations,” said Anna Paglia, chief business officer for State Street Investment Management. “The launch of SPTU provides clients with a low-cost, ultra-short term Treasury option designed to help them meet their income generation and risk mitigation goals and may serve as a flexible and efficient funding solution for some institutional investors, including as a potential collateral tool for certain derivatives market participants.”
Introduced in 2017 and with offerings priced as low as two basis points, the State Street SPDR Portfolio ETF suite is designed to provide investors with greater choice in low-cost ETFs. The suite provides exposure to US equity, international equity, and fixed income asset classes designed to help investors build a diversified core portfolio of stocks and bonds while keeping more of what they earn. Widely embraced by investors, State Street SPDR Portfolio ETFs have amassed more than $323 billion in assets.
SPTU may serve as a cost-effective collateral tool for market participants. The fund is intended to qualify as a permitted investment by futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) under CFTC Reg 1.25, as amended, and as eligible margin collateral for uncleared swaps transactions.
