New Goldman Treasury Cash ETF
ETF Trends writes "New Goldman Sachs Low-Duration Treasury ETF Offers Cash Alternative." It explains, "Goldman Sachs added a ultra-low-duration Treasury bond exchange traded fund in what may be a suitable alternative for investors seeking to park their cash. On Thursday, Goldman Sachs launched the Goldman Sachs Treasury Access 0-1 Year ETF (GBIL). GBIL comes with a 0.14% expense ratio. "The bond trading environment has become more complicated. We wanted our first fixed-income ETF to provide investors a low cost way to obtain the credit quality and income they look for in the Treasury markets, but with greater transparency and ease of use," Michael Crinieri, GSAM's Global Head of ETF Strategies, said in a note."" It adds, "GBIL will try to reflect the performance of the Citi US Treasury 0-1 Year Composite Select Index, which is comprised of U.S. Treasury Obligations with a maximum remaining maturity of 12 months.... The fund has an effective duration of 0.40 year." They quote Goldman, "ETF to provide a same-day creation and redemption capability, offering the potential for faster access to liquidity.... We believe this benefit enhances the versatility of the fund, offering a wider range of potential applications for investors who may need more timely access to cash." Finally, they write, "The ETF is also the first to offer same-day settlement of creations and redemptions in the short-term U.S. Treasury market, according to Goldman Sachs. GBIL allows liquidity providers or so-called authorized participants to create or redeem shares and settle within hours instead of days."
