CLIP: A Simple Way To Access Treasury Bills

seekingalpha05-17

Global X has launched the Global X 1-3 Month T-Bill ETF, which provides easy access to short-term U.S. Treasury bills.CLIP offers a cost-effective way to gain exposure to a basket of U.S. Treasury ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2436499945?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/155095389/image_155095389.jpg","is_english":true,"pubTime":"2024-05-17 17:29","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2436499945","market":"sg","top_or_hot":-1,"title":"CLIP: A Simple Way To Access Treasury Bills","media":"seekingalpha","content":"<div>\n<p>Global X has launched the Global X 1-3 Month T-Bill ETF, which provides easy access to short-term U.S. Treasury bills.CLIP offers a cost-effective way to gain exposure to a basket of U.S. Treasury ...</p>\n\n<a href=\"https://seekingalpha.com/article/4694050-clip-simple-way-to-access-treasury-bills\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CLIP: A Simple Way To Access Treasury Bills</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCLIP: A Simple Way To Access Treasury Bills\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-17 17:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4694050-clip-simple-way-to-access-treasury-bills><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Global X has launched the Global X 1-3 Month T-Bill ETF, which provides easy access to short-term U.S. Treasury bills.CLIP offers a cost-effective way to gain exposure to a basket of U.S. Treasury ...</p>\n\n<a href=\"https://seekingalpha.com/article/4694050-clip-simple-way-to-access-treasury-bills\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://seekingalpha.com/article/4694050-clip-simple-way-to-access-treasury-bills","article_id":"2436499945","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/155095389/image_155095389.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2436499945","pubTimestamp":1715938161,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Tax efficiencies. Interest earned from U.S. Treasury obligations is exempt from state and local taxes, which can be a significant benefit for i","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4550":"红杉资本持仓","BK4588":"碎股","FDN":"First Trust Dow Jones Internet I","CLIP":"Global X 1-3 Month T-Bill ETF","BIL":"债券指数ETF-SPDR Barclays美国1-3月国债","SHV":"美国短期国债ETF-iShares"},"translate_title":"剪辑：获取国库券的简单方法","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BIL":1,"US7Y.BOND":1,"US6M.BOND":1,"US5Y.BOND":1,"US3Y.BOND":1,"US30Y.BOND":1,"US2Y.BOND":1,"US12M.BOND":1,"US10Y.BOND":1,"SHV":1,"CLIP":1,"FDN":0.9,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GB79.BOND":0.6,"US912797FS14.BOND":0.6,"US912797FH58.BOND":0.6},"content_text":"Global X has launched the Global X 1-3 Month T-Bill ETF, which provides easy access to short-term U.S. Treasury bills.CLIP offers a cost-effective way to gain exposure to a basket of U.S. Treasury bills, with a low expense ratio of 0.07%.CLIP outperforms comparable ETFs in terms of fees and offers tax efficiencies, but may have lower yields and be affected by rising interest rates.ryasick ETFs are entirely about efficiency and convenience, which makes it a good wrapper for those who want easy access to parts of the investable landscape from whichever online broker is being used. Global X is well aware of this, which is why they launched the Global X 1-3 Month T-Bill ETF (NYSEARCA:CLIP). This fund is designed to provide investment results that closely correspond to the price and yield performance of the Solactive 1-3 month US T-Bill Index. This is a relatively new fund. It was launched on June 20, 2023. And the idea is simple - invest in U.S. Treasury bills with maturities ranging from one to three months. CLIP is a good option for investors seeking to minimize credit and interest rate risks through this targeted Treasury Bill exposure. With a total expense ratio of just 0.07%, CLIP offers a cost-effective way to gain exposure to a basket of U.S. Treasury bills. ETF Holdings: A Closer Look There's nothing fancy here. The top positions are all, as you'd expect, Treasury Bills. Global X ETFs These positions clearly mature, at which point the fund then buys the next rolling batch of Treasury Bills. Again - convenient as it's doing the roll for the investor. Peer Comparison Some comparable ETFs include the iShares Short Treasury Bond ETF (SHV) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL). The iShares Short Treasury Bond ETF (SHV) also invests in short-term U.S. Treasury securities with maturities of one year or less. It has a slightly higher expense ratio of 0.15% compared to CLIP's 0.07%. However, SHV offers a broader range of maturities, which may appeal to investors seeking more diversification within short-term Treasury securities. The SPDR Bloomberg 1-3 Month T-Bill ETF is another comparable option, focusing on U.S. Treasury bills with maturities of one to three months. BIL has an expense ratio of 0.14%, which is higher than CLIP's 0.07%. Both BIL and CLIP offer similar exposure to short-term Treasury bills, but CLIP's lower expense ratio makes it a more cost-effective choice. No surprises - CLIP has outperformed based on fees alone. StockCharts.com Pros and Cons of Investing in CLIP One of the primary benefits of investing in CLIP is the exposure to short-term U.S. Treasury bills, which are considered one of the safest investments available. This focus on short-term securities helps minimize credit and interest rate risks, making it an attractive option for conservative investors. Another advantage? Tax efficiencies. Interest earned from U.S. Treasury obligations is exempt from state and local taxes, which can be a significant benefit for investors in high-tax states. Additionally, CLIP's low expense ratio of 0.07% ensures that investors can gain exposure to a diversified basket of U.S. Treasury bills at a minimal cost. It's not all positive, of course. One of the main disadvantages of investing in CLIP is the relatively low yield compared to other fixed-income investments. While the ETF offers a 30-day SEC yield of 5.25%, this yield may not be sufficient for investors seeking higher returns. Additionally, the ETF's focus on short-term Treasury bills means that it may not provide the same level of income as longer-term fixed-income securities. Another potential drawback is the impact of rising interest rates on the value of the ETF's holdings. While short-term Treasury bills are less sensitive to interest rate changes compared to longer-term securities, they are not entirely immune. It seems like the Fed is entering a cutting rate cycle, though, which means interest rate risk isn't as much of a concern anymore. Conclusion  This one is easy. It's a cash alternative that's relatively safe and inexpensive compared to other funds that target Treasury Bills. This is not a fund you're going to retire off of, but certainly is one that can allow you to sleep well at night given its volatility profile and risk of the underlying holdings. I actually like this at this point in the cycle, given what I believe are elevated risks in all risk-on assets. If you're nervous about stocks, CLIP can be an easy place to wait things out.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2436499945"}