ETF Managers Group on Wednesday launched a new actively managed ETF engineered to be a cash management tool focused on active risk management, stability and ease of use.
The ETFMG SIT Ultra Short ETF (NYSEArca: VALT) seeks to achieve its investment objective by investing in a diversified portfolio of high-quality, short-term U.S. dollar-denominated domestic and foreign debt securities and other instruments. It comes with a 0.30% expense ratio.
VALT uses the Bloomberg Barclays U.S. Treasury Bills Index: 1-3-month Index as its benchmark index. It seeks to maintain an average effective duration within a range of two months to 1 year.
According to ETF Manager Group’s website, VALT highlights include:
Developed as a secure cash allocation vehicle for investors who seek preservation of capital and fixed income returns in excess of short-term cash equivalents with an emphasis on daily liquidity. Institutional grade, user friendly tool designed to manage cash allocations with the goal of delivering enhanced yield, risk adjusted return and diversification Uses investment grade, US dollar-denominated fixed, variable, and floating-rate debt securities
VALT’s ultrashort duration strategy will be sub-advised by a team led by Bryce Doty of Sit Fixed Income Advisors II, LLC of Sit Investments a $14 billion RIA.
This article originally appeared on ETF Trends.