WisdomTree (NASDAQ: WETF) announced the launch of the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) on the NYSE Arca. USFR seeks to provide exposure to floating rate notes issued by the United States Treasury. The Fund has a net expense ratio of 0.15%. …
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Treasury Floating-Rate Notes (FRNs) Designed To Pay Out More Interest As Market Rates Rise
WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) Provides Exposure to U.S. Treasury’s Newest Security
United States Treasury Issues Floating-Rate Notes (FRNs) For First Time In History
As investors continue to assess their options for reducing interest rate risk, the United States Treasury is seeking to tap this growing demand by issuing FRNs for the first time in its history.
“U.S. floating-rate debt can help bridge an important gap between short-maturity Treasury bills and longer-maturity, fixed rate Treasury bonds. As another means for the Treasury to fulfill growing investor demand and diversify its sources of funding, we believe that issuance and investor use of floating rate Treasuries are poised to grow over the next several years,” said Rick Harper, WisdomTree’s Head of Currency and Fixed Income.
Expanding the WisdomTree Suite of Rising Rates ETF Solutions
“With interest rate risk on the minds of many investors in 2014, we believe that floating-rate Treasury securities provide another tool for investors to manage interest rate risk while generating income payments that are backed by the full faith and credit of the U.S. government,” Harper said.
With the launch of the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR), WisdomTree will offer an ETF to access FRNs, adding to its existing suite of rising rates ETF solutions.
Source: ETFWorld – WisdomTree
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