Invesco said its new US Treasury bond exchange-traded fund (ETF) raised over $1 billion in just over a month since its launch.
Invesco launched the US Treasury Bond 7-10 year Ucits ETF in January on the London Stock Exchange and said the ETF had become one of the firm’s fastest-growing ETFs ever to be launched in Europe.
The fund is part of a suite of four US Treasury ETFs that invest in Treasuries of varying maturities. At their launch the funds were the lowest cost US Treasury bond ETFs in Europe, the firm said. The ongoing charges figure for the ETFs is 0.06% per annum.
Paul Syms, regional head of fixed income product management at Invesco, offered an explanation for the 7-10 year product.
“We have seen plenty of client interest in our range of low-cost US Treasury ETFs, but with the strongest demand coming in the 7-10 year maturity segment. We think this is due to a more subdued outlook for US interest rates, with investors feeling arguably more confident with the higher yields available further out along the maturity spectrum,” he said.
“We expect this demand to continue given the wider market and risk environment and the competitive nature of these products. Highly rated bonds are valued for their safe-haven status and could be increasingly attractive for any investor who is concerned about recession or market.”
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