Daily ETF Watch: Active T-Bill Fund Plan

An active, ultra-short Treasury ETF goes into the regulatory pipeline.

Olly
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Managing Editor
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Reviewed by: Olly Ludwig
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Edited by: Olly Ludwig

New York Alaska ETF Management LLC, a New York-based registered investment advisor, plans to bring to market an actively managed Treasury ETF that singles out credits with just one to three months until maturity.

 

The firm’s proposed 1-3 Month Liquidity Bonds ETF will include a variety of securities—whether short-dated or long-dated—but they must have just a few months to go before they expire, according to the preliminary prospectus filed by the ETF Plus 1 Trust. The filing didn’t include a proposed ticker or a proposed annual expense ratio.

 

The proposed fund will give investors access to rock-solid U.S.-government debt with essentially zero interest-rate risk—all in a highly liquid ETF wrapper. It looks like the fund might serve the purpose of equitizing cash or play the role of a money-market-type fund.

 

It may take a while for the fund to come to market as the company doesn’t yet have permission to issue ETFs. But, in separate paperwork also filed with the Securities and Exchange Commission, the firm has also filed for permission to offer ETFs.

 

Both the registration statement detailing the short-dated Treasury fund and the petition asking for permission to offer ETFs are signed by an executive named Ofer Abarbanel.

 

Olly Ludwig is the former managing editor of etf.com. Previously, he was a financial advisor at Morgan Stanley Smith Barney and an editor at Bloomberg News. Before that, Ludwig was a journalist at the Reuters News Agency in New York.