BetaShares has confirmed the launch of its US Treasury Bond ETF on the Australian Securities Exchange under the ticker GGOV.
The new ETF aims to track the S&P US Treasury 20+ Year AUD Hedged Bond Index, and is expected to provide investors with access to a portfolio of high-quality, long-maturity US Treasury bonds via a cost-effective and convenient ETF.
Forming a part of BetaShares’ Cash and Fixed Income range of ETFs on the Australian market, Alex Vynokur, BetaShares CEO, said the launch of this US Treasury bond ETF is "another important step" on the fund manager's ongoing journey to evolving this range for the benefit of Australian investors and their advisers.
“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," said Mr Vynokur.
"It also offers investors the potential for regular income, particularly as US interest rates and inflation expectations continue to both rise”, he added.
With risk of default by the US government considered very low, US Treasury bonds are commonly respected for their potential diversification and defensive benefits. As such, they 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.
Earlier this month, BetaShares' new Metaverse ETF (MTAV) commenced trading on the ASX.
Described as the first ETF of its kind in Australia, the MTAV is said to provide investors with exposure to a portfolio of leading global companies that are involved in building, developing and operating the Metaverse.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
