Another Single Issue Treasury ETF Debuts

Today, F/m Investments added a fifth fund to its suite of exchange-traded funds that offer focused exposure to different points on the Treasury yield curve. The US Treasury 6 Month Bill ETF (XBIL) invests in six-month Treasury bills. 

XBIL, like the other funds in F/m’s lineup, has an expense ratio of 0.15% and lists on the Nasdaq.  

Similar to the other F/m ETFs, XBIL holds the on-the-run (or most recently issued) Treasury security in its designated tenor for a month before rolling into the next new issue. All of the funds in the family track ICE BofA-branded indexes.  

While there are other funds that hold six-month Treasury bills, they generally hold a wide range of securities with a range of different maturity dates rather than strictly on-the-run issues. The ETFs in the F/m lineup offer targeted exposures.  

“With this launch of XBIL, we’re responding to investor demand for simplified access to the highest-yielding U.S. Treasury security today, with six-month Treasuries yielding over 5%,” said F/m President and CIO Alexander Morris.  

“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,” he added. 

In a press release, the firm notes that the products in its lineup offer simplified access to Treasury securities, regular monthly dividends and a relatively small transaction price compared to the actual bonds, as well as greater liquidity, tax efficiency and an associated derivative market. 

According to Morris, the funds provide all investors with a solution that was previously most easily accessed by institutions.  

F/m entered the ETF market in August 2022 and has a total of nearly $715 million in assets among its current offerings. The largest fund in its family is the US Treasury 3 Month Bill ETF (TBIL), with $355.3 million in assets.  

Beyond TBIL and XBIL, it has products offering exposure to the 12-month bill, the two-year note and the 10-year note. The issuer has another five ETFs in registration for its U.S. Benchmark Series covering the three-, five-and seven-year Treasury notes as well as the 20- and 30-year Treasury bonds.  

Contact Heather Bell at [email protected]