The US Benchmark Series, a brand of F/m Investments, a USD4 billion multi-boutique investment adviser based in Washington DC, has launched the US Treasury 12 Month Bill ETF (Ticker “OBIL”).
The firm writes that the US Benchmark Series is a suite of US Treasury ETFs designed to simplify access to the US Treasury market, holding the most current (“on the run”) US Treasury security that corresponds to its tenor.
With OBIL is the latest maturity ETF to launch from the firm, joining the initial three ETFs which have raised approximately USD300 million in AUM since their mid-August inception – the US Treasury 10 Year Note ETF (Ticker: UTEN); the US Treasury 2 Year Note ETF (Ticker: UTWO); and the US Treasury 3 Month Bill ETF (Ticker: TBIL). Each ETF tracks an ICE index specific to its tenor, the firm says.
“The application of the existing ETF’s has been revolutionary; beyond even our most ambitious expectations,” says Alexander Morris, F/m’s President, CIO, and Co-Creator of the US Benchmark Series. “Given the shape of the yield curve today, we are responding to investor demand in launching the highest yielding tenor, the 12-month, with the intentions to prudently launch the other points on the curve.”
The firm writes that the yield curve is the foundation for nearly all investing, and that the suite of ETFs offers investors the following:
Simplified access to the current benchmark tenor US Treasury securities.
Monthly dividends, providing a more frequent and regular interest payment than holding the underlying securities.
Automatic rolls that provide constant benchmark exposure without hassle or added expense.
At USD50 per share, the ability to transact in fractions of traditional bond sizing.
The other benefits and operational efficacies of the Funds:
Tax efficiency
Intraday liquidity with equity trading and settlement
Access to shorting, and options, facilitating expression of a variety of views on US rates
The firm also reports that Jane Street will serve as lead market marker for OBIL, as it does for sister funds TBIL UTWO, and UTEN. Initial funding will come from Mirae Asset Securities (USA) Inc, and several other investment firms who, the firm writes, look forward to utilising and supporting the market for 12-month ETF. OBIL will be listed alongside its sister funds on the NASDAQi. The US Benchmark Series is housed with series trust provider, The RBB Fund, Inc.
“One of the nice things about getting this to market with RBB is the ease in which they have been able to help us launch the US Benchmark Series,” says Dave Littleton, CEO of F/m Investments. “Utilising a high-quality platform to help launch the funds has made the entire process trouble-free.”
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