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Products February 1, 2001
Fixed Income ETFs Coming
January 2, 2001 (PLANSPONSOR.com) - Plan sponsors
may soon be able to buy exchange-traded funds (ETFs) that
track US Treasury indexes.
Reported by Nevin E. Adams
Nuveen Investments is planning to launch Fixed Income Trust Receipts (FITRs), the first ETFs that track Treasury Indexes. The FITRs will be based on indexes of 1-year, 2-year, 5-year and 10-year Treasury issues and 20-year Treasury STRIPs.
The funds will track the Ryan Treasury Indexes, created by fixed-income quantitative research organization Ryan Labs. The indexes reflect the risk and return characteristics of on-the-run (OTR) treasurys, which are the most recently auctioned Treasury security for a designated maturity.
Once final regulatory approval is obtained, the FITRs will trade on the American Stock Exchange.