VanEck lists short-term US Treasury Bonds ETF

VanEck has listed its 33rd ETF on the ASX, a 1-3 month US Treasury Bond ETF (ASX code: TBIL) which will consist of short-term AAA-rated US treasury bills.

"TBIL will be the first short-term US Treasury bond ETF of its kind listed on the ASX, Arian Neiron chief executive officer and managing director VanEck, Asia Pacific said.

"Over the past 12 months short-term treasury bond yields have jumped following a series of interest rate hikes from the Federal Reserve. Short-term treasury bond yields should continue to rise while inflation persists."

The fund has management fees of 0.22 per cent per annum and is unhedged. It offers Australian investors a potential hedge against systemic or market episodes.

"History has shown when confidence erodes, or when volatility spikes in financial markets, investors gravitate towards short-term US treasury bonds as a safe haven because they are considered a 'risk-free' asset as their payments are backed by the full support and credit of the US. US government bonds are highly rated by Fitch, S&P and Moody's, Neiron said.