Betashares launches two US Treasury ETFs
Betashares has expanded its range of fixed income solutions by adding to new exchange-traded funds (ETFs) that offer investors targeted exposure to US Treasuries.
The Betashares Inflation-Protected US Treasury Bond Currency Hedged ETF, which commenced ASX trading on 20 September, provides exposure to a portfolio of US Treasury inflation-protected securities.
Meanwhile, investors can gain exposure to a portfolio of US Treasuries with maturities between seven and 10 years from the Betashares US Treasury Bond 7-10 Year Currency Hedged ETF, which is expected to begin ASX trading in late September.
According to the fund manager, cash and fixed income ETFs received nearly $4.4 billion in
net inflows from investors between January and August 2023.
This made it the highest growth category in the Australian ETF industry this year to date.
Betashares manages more than $9 million in cash and fixed income ETFs as at September 2023, making it the largest manager of investor capital in these asset classes.
Alex Vynokur, Betashares chief executive, said the two new products will enable targeted exposure to parts of the world’s most important global fixed income markets.
“As an asset class, fixed income has resonated strongly with investors amid the fastest rate hiking cycle in a generation. In this climate, we’re proud to expand the range of options available to investors looking to build a sophisticated fixed income allocation within a well diversified portfolio,” he commented.
Vynokur added that the expanded range will give investors greater access to parts of the market which have traditionally been more difficult to access.
“We’re proud to continue to build on our commitment to expand the range of quality fixed income investment solutions available to investors and their financial advisers.”
In its monthly ETF review, Betashares noted that Australian equities saw inflows of $1.1 billion in August, marking a departure from previous months when cash and fixed income exposure was popular and represented 50 per cent of the total month’s inflows.
Strong monthly flows resulted in a total market cap increase of $2.5 billion for the Australian ETF industry, while industry funds under management ended the month at $156.1 billion.
Earlier this month, Global X announced the launch of a Cybersecurity ETF while VanEck announced it will launch three focused on government bonds later this year.
AUTHOR
Jasmine Siljic
Recommended for you
ETF provider Global X is targeting $10 billion in assets under management by the end of 2025 as it looks to the institutional space for ETF uptake by super funds.
In the first full month since the exit of chief executive, David George, Magellan has reported a rise in funds under management for the first time since January 2023.
It is too early to think about rate cuts in Australia, according to Schroders, and even if they are paused for the time being, they could rise further over the next few years.
GQG is considering launching active ETFs for investors as it approaches US$100 billion in funds under management.
COMMENTS