An Innovative Suite of ETFs designed to Equitize the Yield Curve
F/m Investments (“F/m”), a $4 billion multi-boutique investment advisor based in Washington, D.C., is proud to announce the launch of the US Benchmark Series–a suite of US Treasury ETFs (“the Funds”) designed to equitize the yield curve. This endeavor, a collaboration between F/m’s brands North Slope Capital LLC and Genoa Asset Management LLC, with support from The RBB Fund, Inc (“RBB”), will make it easier than ever before for investors to access the US Treasury market.
“The potential applications of these ETFs are limitless and still being discovered”
The US Benchmark Series will allow investors of all sizes to own each of the “Benchmark” US Treasuries in a single-security ETF. Each Fund will hold the most current (“on the run”) US Treasury security that corresponds to its stated tenor. The initial three ETFs being listed today on the NASDAQi are the US Treasury 10 Year ETF (Ticker: UTEN); the US Treasury 2 Year ETF (Ticker: UTWO); and the US Treasury 3 Month Bill ETF (Ticker: TBIL). Each ETF will track an ICE index specific to its tenor.
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“The potential applications of these ETFs are limitless and still being discovered,” said Peter Baden, Chief Investment Officer of Genoa Asset Management, Co-Creator of the US Benchmark Series, and Portfolio Manager of the Funds. “Ease of access, tax efficiency, and a derivative market on these ETFs are just some examples of how they seek to deliver superior targeted access to the US Treasury market.”
This expansion into ETFs further enhances F/m’s ability to support their affiliates and clients. F/m empowers growth and independence for boutiques, lift-outs, and overseas asset managers looking to access the US market.
“We believe The US Benchmark Series will revolutionize the financial markets, making the most liquid securities (US Treasuries) accessible to everyone in a simplified way,” said Alexander Morris, F/m’s President, CIO, and Co-Creator of the US Benchmark Series. “We are equitizing the yield curve, giving investors low-friction access to US Treasuries-as well as the ability to short or potentially use equity options to express views on rates.”
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The Yield Curve is the foundation for nearly all investing. These ETFs now offer 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 $50 per share, the ability to transact in fractions of traditional bond sizing.
- The other benefits and operational efficacies of ETFs:
- Tax efficiency
- Intraday liquidity with equity trading and settlement
- Access to shorting, and in time options, facilitating expression of a variety of views on US rates
Lead market maker for the Funds will be Jane Street Capital (“Jane Street”), a leading global liquidity provider who trades more than 5,000 ETFs worldwide. Initial funding of the US Benchmark Series will come from Jane Street, Mirae Asset Securities (USA) Inc, and several other investment firms who look forward to supporting the market for these new products. “We are always excited to support product innovation in the ETF market,” said a spokesperson from Jane Street. “The US Benchmark Series broadens access to treasury markets, allowing investors greater flexibility and ease in meeting their individual investment goals.”
RBB’s independent and open-architecture platform allows advisors to customize solutions at a low-cost.
“Most people today look to fintech and crypto for innovation, but the US Benchmark Series-which delivers nearly universal access to invest in the yield curve-strikes me as one of the greater innovations in the last few years,” said Arnold Reichman, Chairman of The RBB Fund.
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