F/m’s TBIL Surpasses $4 Billion in Just Two Years Amid Growing Demand for Treasury ETFs

Rhea-AI Summary

F/m Investments' US Treasury 3 Month Bill ETF (TBIL) has surpassed $4 billion in assets just two years after its launch, highlighting growing demand for accessible Treasury investments. TBIL is part of the US Benchmark Series, which has raised over $5 billion since inception. The series offers 10 ETFs providing access to specific points on the US Treasury yield curve.

CEO Alexander Morris emphasized TBIL's strategic value for investors seeking stable treasury exposure. F/m has also filed for a novel SEC exemption to offer a mutual fund share class for 401(k) investors. Additionally, the company launched the US Credit Series in January, tracking the first investable index in investment grade credit.

Positive

• TBIL ETF surpassed $4 billion in assets within two years
• US Benchmark Series raised over $5 billion since launch
• Company filed for SEC exemption to offer mutual fund share class for 401(k) investors
• Launched US Credit Series tracking first investable index in investment grade credit

Negative

• None.

Insights

Financial Analyst

The rapid growth of TBIL to $4 billion in assets within two years is a significant achievement in the ETF space. This success highlights a strong market demand for accessible Treasury investments, particularly in the current high-interest rate environment. The broader US Benchmark Series, reaching $5 billion in total assets, further underscores this trend.

From an investor's perspective, TBIL offers a compelling option for cash management and risk mitigation. Its focus on 3-month Treasury bills provides a stable, low-risk investment vehicle with potential for higher yields compared to traditional savings accounts. The ETF's structure allows for greater liquidity and easier trading compared to directly purchasing Treasury bills.

The planned mutual fund share class for 401(k) investors could significantly expand TBIL's market reach, potentially driving further asset growth. However, investors should be aware of interest rate risks, as rising rates could impact the ETF's performance in the short term.

Market Research Analyst

The success of TBIL and the US Benchmark Series reflects a broader market shift towards more precise, targeted investment tools. This trend is particularly notable in fixed income, where investors are seeking ways to fine-tune their portfolios in response to economic uncertainties and interest rate fluctuations.

The rapid asset accumulation of TBIL - $4 billion in just two years - suggests a strong product-market fit. This success could potentially attract more competition in the space, leading to innovation and potentially lower fees for investors. The expansion into the 401(k) market, if approved, could be a game-changer, opening up a vast new investor base.

However, it's important to note that the current high-interest rate environment has likely been a significant tailwind for these products. A shift in the interest rate landscape could impact future growth rates. Nonetheless, the precision offered by these ETFs in accessing specific points on the yield curve is likely to remain attractive to investors seeking to manage duration risk.

Legal Expert

F/m Investments' filing for a novel exemption with the SEC to allow TBIL and the Benchmark Series to offer a mutual fund share class is a significant development. If approved, this could set a precedent in the ETF industry, potentially blurring the lines between ETFs and mutual funds.

This move could have far-reaching implications for the $6.5 trillion 401(k) market, potentially giving participants access to more cost-effective and flexible investment options. However, it also raises regulatory questions about the structure and oversight of such hybrid products.

Investors and industry professionals should closely monitor the SEC's response to this filing. An approval could trigger similar moves by other ETF providers, potentially reshaping the retirement investment landscape. However, there may be concerns about increased complexity and potential confusion for retail investors, which could lead to additional regulatory scrutiny or disclosure requirements.

The milestone underscores the success of the US Benchmark Series in offering precise, accessible Treasury investments.

WASHINGTON--(BUSINESS WIRE)-- F/m Investments LLC (“F/m”) announces The US Treasury 3 Month Bill ETF (Ticker: TBIL) has crossed the $4 billion threshold in assets. This milestone comes just after TBIL’s two-year anniversary and highlights the growing investor demand for accessible and precise Treasury investments, reflecting TBIL's pivotal role within the financial market landscape.

Launched as a part of F/m Investments’ US Benchmark Series, TBIL was designed to provide investors with efficient access to US Treasury bills. TBIL and the nine additional ETFs that comprise the US Benchmark Series give investors access to US Treasuries at 10 specific points across the yield curve. The Series has raised more than $5 billion in total since its launch two years ago, confirming investor demand for a better way to invest in US Treasury securities.

Alexander Morris, CEO of F/m Investments, shared, "The remarkable ascent of TBIL to over $4 billion in assets underscores the strategic value it offers investors seeking stable and efficient treasury exposure. In a landscape brimming with complex investment vehicles, our US Benchmark Series stands out by delivering straightforward access to the treasury market, meeting the needs of investors across the US Treasury yield curve.”

The success of TBIL reflects F/m’s commitment to providing top-tier investment solutions that meet the evolving needs of the market. The US Benchmark Series has been instrumental in simplifying access to US Treasuries, providing investors with tools to manage duration, yield exposure, and risk with unprecedented ease. Its innovative approach has not only catered to the needs of individual investors but has also served institutional clients seeking stable, predictable returns in a volatile market environment.

“As interest rates fluctuate, the US Benchmark Series ETFs have become invaluable for investors seeking to mitigate risk and achieve stable returns," continued Morris. "Their use as a cash alternative has expanded significantly, providing wealth managers with a flexible and secure option to optimize their investment strategies.”

The drive to innovate didn’t stop with TBIL and the US Benchmark Series. One year ago, F/m filed for a novel exemption with the SEC to allow TBIL and the Benchmark Series to offer a mutual fund share class. This would allow 401(k) investors access to all the rapid innovation they’re missing in the ETF marketplace. In addition, F/m launched the US Credit Series in January, a suite of ETFs that track the industry’s first investable index in investment grade credit. The US Credit Series is consistent with F/m’s mission to provide a set of tools that investors can use to build portfolios with precision and efficiency.

[1] This periodic transition to the most-recently auctioned Treasury bill, note, or bond of a stated maturity, which is referred to as the “on-the-run” or “OTR” security of that maturity, occurs on one day. An OTR security is the most recently issued of a periodically issued security (as opposed to an off-the-run security, which is a security that has been issued before the most recent issue and is still outstanding).
Duration: A measurement of a bond’s interest rate risk that considers a bond’s maturity, yield, coupon and call features.
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About US Treasury 3 Month Bill ETF

The investment objective of the US Treasury 3 Month Bill ETF is to seek investment results that correspond (before fees and expenses) generally to the price and yield performance of the ICE BofA US 3-Month Treasury Bill Index (G0O1)

About The US Benchmark Series

The US Benchmark Series allows investors of all sizes to own each of the “Benchmark” US Treasuries in a single-security ETF. Each ETF holds the most current (“on the run”) US Treasury security that corresponds to its stated tenor. For more information, please visit (www.ustreasuryetf.com).

About F/m Investments

F/m Investments is a $15 billion multi-boutique investment firm providing diversified investment strategies to advisors and institutional investors across asset classes, markets, and styles. For more information, please visit www.fminvest.com.

Disclosures:

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (888)123-4589 or visit our website at www.fminvest.com. Read the prospectus or summary prospectus carefully before investing.

As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise.

Fund Risks: The UST 3 Month Bill Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the UST 3 Month Bill Fund’s investments more than the market as a whole, to the extent that the UST 3 Month Bill Fund’s investments are concentrated in a particular issue, issuer or issuers, country, market segment, or asset class. While U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. Government, such securities are nonetheless subject to credit risk (i.e., the risk that the U.S. Government may be, or be perceived to be, unable or unwilling to honor its financial obligations, such as making payments).

ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the month-end rebalancing date.

Investments involve risk. Principal loss is possible.

Distributed by Quasar Distributors, LLC

View source version on businesswire.com: https://www.businesswire.com/news/home/20240820228692/en/

Tucker Slosburg

Lyceus Group

fmpr@lyceusgroup.com

206.635.4196

Source: F/m Investments LLC

FAQ

What is the asset value of F/m's US Treasury 3 Month Bill ETF (TBIL)?

F/m's US Treasury 3 Month Bill ETF (TBIL) has surpassed $4 billion in assets as of August 2023.

How many ETFs are in F/m's US Benchmark Series?

The US Benchmark Series comprises 10 ETFs, providing access to US Treasuries at specific points across the yield curve.

What is the total amount raised by F/m's US Benchmark Series?

The US Benchmark Series has raised more than $5 billion in total since its launch two years ago.

What new product did F/m Investments launch in January 2023?

F/m Investments launched the US Credit Series in January 2023, a suite of ETFs tracking the industry's first investable index in investment grade credit.