The new ETF tracks the FTSE US Treasury Short Duration index
DWS XTrackers has launched an ETF that seeks to provide ultra-short duration exposure to the US Treasuries market.
The Xtrackers US Treasuries Ultrashort Bond UCITS ETF, which has an annual all-in fee of 0.07%, provides US dollar short-duration exposure and has listed on the London Stock Exchange and Germany’s Xetra stock exchange.
DWS said its new ETF tracks the FTSE US Treasury Short Duration index, which references 67 fixed rate and floating rate US Treasury securities and T-Bills and has a yield-to-maturity of 0.12%.
Olivier Souliac, head of passive index strategy and analytics at DWS, said: “We aim to offer our clients a full range of fixed income exposures to meet all their asset allocation needs.
“This new ETF, which provides long US Treasury bond exposure but with ultra-short duration risk, provides investors with a low interest rate risk but improved yield alternative to cash.”