ETF Managers Group on Wednesday launched a new actively managed ETF engineered to be a cash management tool focused on active risk management, stability and ease of use.
The ETFMG SIT Ultra Short ETF (NYSEArca: VALT) seeks to achieve its investment objective by investing in a diversified portfolio of high-quality, short-term U.S. dollar-denominated domestic and foreign debt securities and other instruments. It comes with a 0.30% expense ratio.
VALT uses the Bloomberg Barclays U.S. Treasury Bills Index: 1-3-month Index as its benchmark index. It seeks to maintain an average effective duration within a range of two months to 1 year.
According to ETF Manager Group’s website, VALT highlights include:
- Developed as a secure cash allocation vehicle for investors who seek preservation of capital and fixed income returns in excess of short-term cash equivalents with an emphasis on daily liquidity.
- Institutional grade, user friendly tool designed to manage cash allocations with the goal of delivering enhanced yield, risk adjusted return and diversification
- Uses investment grade, US dollar-denominated fixed, variable, and floating-rate debt securities
VALT’s ultrashort duration strategy will be sub-advised by a team led by Bryce Doty of Sit Fixed Income Advisors II, LLC of Sit Investments a $14 billion RIA.
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