BetaShares has announced the launch of its US Treasury Bond ETF on the Australian Securities Exchange: BetaShares U.S. Treasury Bond 20+ Year ETF – Currency Hedged ETF (ASX: GGOV).
The ETF aims to track the S&P U.S. Treasury 20+ Year AUD Hedged Bond Index, and will provide investors with access to a portfolio of high-quality, long-maturity US Treasury bonds via a cost-effective and convenient ETF.
US Treasury bonds are amongst the highest credit quality, as the risk of default by the US Government is considered very low. As a result, US Treasury bonds typically form a core part of the asset allocation of most of the world’s major pension and sovereign funds, as well as a key part of many countries’ central bank reserves.
GGOV offers potential diversification and defensive benefits for investment portfolios, as long-term US Treasuries historically have tended to perform well in times of global economic weakness and US recessions. In addition, US Treasuries provide potential for a reliable, high-quality source of income above long-term inflation expectations.
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“GGOV is a simple-to-access and cost-effective solution for investing in long term US Treasury bonds – an exposure that many leading global investors use to diversify and defend their portfolios during periods of global economic slowdown. It also offers investors the potential for regular income, particularly as US interest rates and inflation expectations continue to both rise,” said Alex Vynokur, BetaShares CEO.
“We’re pleased to offer this important portfolio building block to investors via a familiar ETF structure, as part of BetaShares’ leading Cash and Fixed Income range of ETFs on the Australian market. The launch of this US Treasury bond ETF is another important step on our ongoing journey to evolving this range for the benefit of Australian investors and their advisers.”
In July, ETF Securities also provided more options for Australian investors to invest in the fixed income market launching new funds ETFS US Treasury Bond (Currency Hedged) ETF (ASX Code: USTB) and ETFS USD High Yield Bond (Currency Hedged) ETF (ASX Code: USHY).
USTB was the first pure-play exposure to US Treasuries available to Australian retail investors.
