ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Night Effect Channel
  2. NightShares Uses XONE to Manage Cash Collateral
Night Effect Channel
Share

NightShares Uses XONE to Manage Cash Collateral

James ComtoisNov 16, 2022
2022-11-16

BondBloxx Investment Management recently launched a suite of eight duration-specific U.S. Treasury ETFs, which seek to offer investors a more precise, lower-cost way to get exposure to U.S. Treasury Securities. One way that that these funds can be used is for cash collateral management, which is how NightShares is using the BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE ).

NightShares is an ETF provider focused on capturing value from the “night effect,” a phenomenon whereby overnight markets have historically outperformed the daytime trading session on a risk-adjusted basis. In June, NightShares launched its first two ETFs: the NightShares 500 ETF (NSPY ) and the NightShares 2000 ETF (NIWM ). In October, the firm launched the NightShares 500 1x/1.5x ETF (NSPL B).

The issuer allocates assets through a combination of stocks, U.S. Treasuries, and futures contracts or total return swaps. So, rather than buy and sell the Treasuries and manage the cash itself, NightShares uses XONE as a collateral vehicle to back up its futures contracts in NIWM and NSPL.

“It makes a lot of sense for us. Managing the cash collateral is time intensive,” said Bruce Lavine, CEO of NightShares. “It’s hard to get the scale that BondBloxx might get, so for a very low fee, we thought it would make sense as part of our cash flow.”

BondBloxx co-founder Tony Kell told VettaFi that investing in this ETF is “more convenient than the three other options,” which are to sit on cash, trade T-bills, or invest in money market funds.

“Unlike sitting on cash, this will give them big yield,” Kelly said. “You could replicate it with T-bills, but that’s a laborious process, whereas the solution here is we do that for you for 3 basis points. And money market funds are also expensive.”

Launched in October of 2021 to provide precision ETF exposure for fixed income investors, Kelly co-founded BondBloxx with ETF industry leaders Leland Clemons, Joanna Gallegos, Mark Miller, Brian O’Donnell, and Elya Schwartzman. The team has collectively built and launched over 350 ETFs at firms including BlackRock, JPMorgan, State Street, Northern Trust, and HSBC.

In addition to the eight target-duration U.S. Treasury ETFs, BondBloxx has launched 19 high-yield products since February, including seven industry sector-specific high-yield bond ETFs, three ratings-specific high-yield bond ETFs, and one short-duration emerging market bond ETF.

“BondBloxx has continued to launch innovative products since its founding and has expanded the ETF universe with targeted products where there is white space,” said Todd Rosenbluth, head of research at VettaFi. “Their broad range of fixed income funds makes them a firm to watch as the asset category grows.”

For more news, information, and strategy, visit the Institutional Income Strategies Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X