Global X ETFs launched the Global X 1-3 Month T-Bill ETF (CLIP ) on the New York Stock Exchange. The fund provides investors with exposure to short-term Treasuries.
CLIP seeks to provide investment results that correspond to the Solactive 1-3 Month U.S. T-Bill Index. It carries an expense ratio of 0.07%.
Global X’s director of research Rohan Reddy said CLIP offers “critical access to the front end of the Treasury curve.”
The front end of the yield curve has risen significantly in recent months. This has created a sharply inverted yield curve as the Federal Reserve has raised interest rates to curb inflation. During such periods of elevated interest rates, short-term Treasuries can offer investors a compelling alternative to cash positions.
“CLIP offers an attractive option for investors seeking to maintain flexibility during this uncertain macroeconomic environment,” Reddy added.
Income Potential + Low Risk
Treasury bills can provide investors with income potential while carrying relatively low interest rate risk due to their short-term nature. CLIP offers investors the benefit of these short-term Treasuries in the form of a transparent and cost-effective ETF wrapper.
“Advisors have turned to ultra-short-term bond ETFs to stay invested and earn income in a rising rate environment,” said VettaFi’s head of research Todd Rosenbluth. “While there’s entrenched products, it is great to see Global X expand their lineup.”
The launch of CLIP is part of Global X expanding its lineup of ETFs in recent months. Last month, the firm listed the Global X Carbon Credits Strategy ETF { % etf NTRL %}. It also completed the conversion two mutual funds into two actively managed emerging markets ETFs: the Global X Emerging Markets Great Consumer ETF (EMC ) and the Global X Emerging Markets ETF (EMM ). In April, the issuer launched the Global X PropTech ETF (PTEC ).
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