US treasury bond ETF listed on ASX

BetaShares’ newest US Treasury Bond ETF has become the latest exchange traded fund (ETF) to hit the Australian Securities Exchange (ASX).

The BetaShares U.S. Treasury Bond 20+ Year ETF – Currency Hedged (GGOV) fund provides investors with a portfolio of high-quality, long-maturity US Treasury Bonds and tracks the S&P U.S. Treasury 20+ Year AUD Hedged Bond Index.

“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,” BetaShares chief executive, Alex Vynokur, said.

“It also offers investors the potential for regular income, particularly as US interest rates and inflation expectations continue to both rise.

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.”

GGOV aims to tap into the low risk of poor returns from US Treasury bonds due to the low risk of default by the US Government.

It also offers some diversification benefits for portfolios with the strong track record of US bonds in times of economic slowdowns and US recessions, as well as its reliability to provide a source of income notwithstanding long-term inflation expectations.