Global X Launches Ultrashort US Treasury ETF in Europe

Global X Launches Ultrashort US Treasury ETF in Europe

The firm enters Europe's fixed-income market despite concerns interest rates have peaked.

Reviewed by: Staff
Edited by: Mark Nacinovich

LONDONGlobal X has launched its first fixed-income ETF in Europe, an ultrashort U.S. Treasury strategy.

The Global X 1-3 Month T-Bill UCITS ETF (CLIP) is listed on the London Stock Exchange and Deutsche Boese with an expense ratio of 0.07%.

CLIP tracks the Solactive 1-3 Month US T-Bill index, which offers exposure to ultrashort U.S. Treasuries, offering a highly liquid, interest-bearing alternative to cash.

The asset manager said the ETF is an attractive option for investors seeking to minimize credit and interest rate risk.

However, there are signs investors are looking to extend duration in their portfolios as many bet on peaking interest rates.

Last month, investors pulled over $1billion from the PIMCO US Dollar Short Maturity UCITS ETF, according to data from ETFbook.

Latest Global X ETF Launch in Europe

It is the group’s latest launch since it unveiled the Global X S&P 500 Annual Buffer UCITS ETF (SPAB) and the Global X S&P 500 Annual Tail Hedge UCITS ETF (SPAH) last month.

In the same month, Global X CEO Luis Berruga decided to step down after almost a decade at the $39 billion ETF issuer.

He was replaced by interim CEO Thomas Park who is a Global X board member and co-CEO of the U.S. arm of parent company Mirae Asset Global Investments.

Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and retail investments, most recently at Citywire, where he was a senior reporter covering environmental, social and governance investing.