ETF Watch: PowerShares Files Treasury Fund

PowerShares to launch short-term Treasury ETF.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

A recent filing from Invesco PowerShares outlines the firm’s plan to launch an ETF investing in short-term Treasury debt. The PowerShares Treasury Collateral Portfolio is slated to list on the NYSE Arca and will track an index that covers U.S. Treasury notes, bills and floating-rate bonds with at least one month but no more than 12 months of remaining maturity. The index’s components are weighted by market value.

The prospectus specifically states that the ETF is not a money market fund.

The closest comparison would be the iShares Short Treasury Bond ETF (SHV | A-97), which rolled out in 2007 and has $3.4 billion in assets. SHV, like the proposed PowerShares fund, holds Treasury debt with one to 12 months of remaining maturity. As of July 1, the fund will begin tracking the ICE U.S. Treasury Short Bond Index, rather than the Barclays U.S. Short Treasury Index.

Contact Heather Bell at [email protected].

 

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