VALT, the ETF for Liquid Fixed Income Returns
A new ETF launched this week is the ETFMG SIT Ultra Short ETF (VALT).
ETF Managers Group, along with SIT Fixed Income Advisors launched the Ultra Short ETF. Listed on the NYSE Arca, its ticker is VALT.
VALT is ideal for investors seeking the preservation of capital and fixed income returns. Further, it is akin to a secure cash allocation vehicle, but with returns superior to short-term cash equivalents, and the advantage of daily liquidity.
ETFMG SIT Ultra Short ETF (VALT) features
VALT delivers enhanced yield, risk-adjusted return, and diversification for cash allocations. Moreover, the ETF is actively managed and functions as a cash management tool.
VALT’s portfolio includes investment grade, US dollar-denominated fixed, variable, and floating-rate debt securities of short duration and varying maturities. However, these may be either domestic or foreign debt securities.
This Ultra Short ETF uses the Bloomberg Barclays U.S. Treasury Bills Index: 1-3-month Index as its benchmark index.
However, the expected average effective portfolio duration varies between 2 months and one year. Ultrashort duration strategy is sub-advised by Sit Investments, a $14 billion RIA.
The fund has an expense ratio of 0.30%.
VALT: Bottom line
According to the prospectus, the fund selects its holdings from debt issues rated within the top four rating categories of firms such as Moody’s or S&P.
The fund takes into account yield curve positioning, sector allocation, and security selection.
The fund focuses on active risk management, stability, and ease of use.
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