Betashares will add two United States Treasury exchange-traded funds (ETF) to its current suite of cash and fixed income ETFs, with the new investment vehicles offering inflation protection and long-term maturity timeframes for investors.
The Betashares Inflation-Protected US Treasury Bond Currency Hedged ETF (UTIP) will provide exposure to a portfolio of US Treasury inflation-protected securities and is available now on the Australian Securities Exchange (ASX).
The Betashares US Treasury Bond 7-10 Year Currency Hedged ETF (US10), which is expected to start trading on the ASX in late September, will provide exposure to a portfolio of US Treasuries with maturities between seven and 10 years.
The investment manager noted that between January and August, cash and fixed income ETFs received nearly $4.4 billion in net inflows and it was the highest growth category in the Australian ETF sector for this year, and, at September 2023, it now managed more than $9 billion in cash and fixed income ETFs.
Betashares chief executive Alex Vynokur said the new ETFs created targeted access to parts of the world’s most important global fixed income market and were part of the firm’s plans to expand its range of fixed income investment solutions for advisers and investors.
“As an asset class, fixed income has resonated strongly with investors amid the fastest rate-hiking cycle in a generation,” Vynokur said.
“In this climate, we’re proud to expand the range of options available to investors looking to build a sophisticated fixed income allocation within a well-diversified portfolio.
“Our expanded range of US Treasury ETFs will allow investors to gain exposure to more parts of the market that have traditionally been harder to access.”
The new funds bring the total number of cash and fixed income ETFs offered by Betashares to 13 and follow the release in May of two global shares ETFs.
The Treasury bond ETF space has also seen a number of other new offerings, with VanEck releasing a short-term US Treasury bills ETF in May and Blackrock introducing an ETF offering exposure to US government bonds with one-to-30-year maturities.
