Buyer Beware or Act Now? Ultra-Short Fixed Income Implementation Ideas

With the Fed tightening monetary policy to combat inflation, fixed-income’s future is uncertain. Investors have turned to short-duration bond strategies to sidestep volatility and continue generating income.

In the upcoming webcast, Buyer Beware or Act Now? Ultra-Short Fixed Income Implementation Ideas, Ben Becker, exchange traded fund (ETF) product specialist at Goldman Sachs Asset Management, will highlight the benefits of short duration, cash alternative strategies to hedge against ongoing bond market risks and produce yields.

For example, the Goldman Sachs Access Ultra Short Bond ETF (GSST) provides exposure to a broad universe of ultra-short duration, high-quality fixed income securities. The ETF tries to generate potentially higher returns relative to traditional money market funds while seeking to preserve capital.

Ultra-short, high-quality fixed income securities may provide enhanced income relative to traditional money market funds without introducing materially higher volatility, according to Goldman Sachs.

Additionally, the Goldman Sachs Treasury Access 0-1 Year ETF (NYSEArca: GBIL) looks to reflect the performance of the Citi US Treasury 0-1 Year Composite Select Index, which is comprised of U.S. Treasury obligations with a maximum remaining maturity of 12 months. U.S. Treasury obligations refer to securities issued by the U.S. Treasury, where the U.S. government backs the payment of principal and interest.

In addition to the typical intraday trading ease of ETFs, GBIL offers two daily net asset values, allowing authorized participants to create or redeem twice a day. Goldman Sachs believes this feature enhances the liquidity and versatility of the fund, offering a wider range of potential applications.

“GSAM Fixed Income and Liquidity Solutions has over 35 years of experience in Treasury security selection, trade negotiation, and execution. The team employs a rigorous risk management process and volume trading in the Treasury market, resulting in economies of scale,” according to Goldman Sachs.

Financial advisors who are interested in learning more about short-duration, cash alternative strategies can register for the Tuesday, August 23 webcast here.