ComStage Launches Swathe Of U.S. Govt Debt ETFs

ComStage Launches Swathe Of U.S. Govt Debt ETFs

The timing is fortuitous as short-dated U.S. sovereigns go to zero yield this week due to investor demand

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Editor, etf.com Europe
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Reviewed by: Rachael Revesz
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Edited by: Rachael Revesz

ComStage has launched five exchange traded funds (ETFs) mostly focused on shorting U.S. Treasuries, the same week that short-dated U.S. sovereign debt yielded zero percent for the first time in history.

The ETF arm of Commerzbank listed five funds on the Deutsche Börse today, with four of them tracking an index of 10-year U.S. Treasury futures (ticker E570), shorting the 10-year Treasury future (E571), shorting the Treasury bond future (E572) and double shorting the Treasury bond future (E573). They all have annual fees of 0.20 percent.

The timing of the launches is fortuitous because three-month T-bills were sold with zero yield this week, as investors are still clamouring for safe havens in anticipation of rising interest rates.

Recent BlackRock data revealed that shorter duration bond ETFs gained $5.7 billion in September, the third month in a row to draw in more than $5 billion to this asset class. Of those flows, 40 percent went to U.S. Treasury ETFs.

These new Luxembourg-domiciled ETFs start trading on 14 October and have a base currency of USD.

Commerzbank also launched a euro currency-hedged commodity ETF, excluding agriculture, for fees of 0.35 percent (ticker C099).

 

Rachael Revesz joined etf.com in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.