F/m Investments adds six-month T-Bill ETF to single-bond suite

Mar 9th, 2023 | By | Category: Fixed Income

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Washington-based investment adviser F/m Investments has expanded its suite of fixed income ETFs comprising just a single underlying US Treasury bond.

F/m Investments adds six-month T-Bill ETF to single-bond suite

F/m Investments’ single-bond ETFs target specific tenors of the US Treasury yield curve.

Listed on Nasdaq, the US Treasury 6 Month Bill ETF (XBIL US) holds the most current (on-the-run) issue for the six-month tenor of the Treasury yield curve.

The fund is the fifth ETF from F/m Investments, adding to existing single-bond ETFs that target the three-month, 12-month, two-year, and ten-year tenors of the Treasury yield curve.

Those funds are the US Treasury 3 Month Bill ETF (TBIL US), US Treasury 12 Month Bill ETF (OBIL US), US Treasury 2 Year Note ETF (UTWO US), and US Treasury 10 Year Note ETF (UTEN US). Collectively, the funds have accumulated around $700 million in assets.

Each of the firm’s five ETFs always holds their respective tenor’s latest issue, trading out of the previous issue as soon as a new on-the-run issue is released.

According to F/m Investments, its ETFs are helping to revolutionize how investors access Treasury markets. The firm notes that the funds allow institutional investors to avoid custody issues related to holding actual US Treasuries, while most retail investors are now able to access single-bond trading for the first time.

Each ETF distributes dividends monthly, providing a more frequent and regular interest payment than holding actual US Treasuries, while they also benefit from the liquidity, convenience, and potential tax benefits inherent in the ETF structure.

Each fund comes with an expense ratio of 0.15%.

Alexander Morris, President and CIO of F/m Investments, said: “With this launch of XBIL, we’re responding to investor demand for simplified access to the highest-yielding US Treasury security today with six-month Treasuries yielding over 5%. Investors want an easy, tax-efficient way to obtain yields that have not been seen in a low-risk, liquid investment in a very long time.”

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