These new Treasury ETFs are further dicing up the bond market for investors. Here's how they work

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F/m Investments launched a series of ETFs this week focused on individual maturities for U.S. government debt, including the 10-year Treasury.

A new group of ETFs is bringing the stodgy Treasury market even closer to the stock market and giving some investors a way to make targeted bets on the yield curve. F/m Investments launched a series of ETFs last week focused on individual maturities for U.S. government debt, giving investors the ability to easily gain exposure to specific segments of the Treasury market. The funds have a relatively simple structure.

The focus on single time-frames differs from existing Treasury ETFs. For example, the popular iShares series of Treasury funds takes a wider scope, such as a 1-3 year Treasury fund and 20+ year Treasury fund . The lack of specificity in fixed income ETFs stands in contrast to equity ETFs, which have boomed over the past decade with increasingly customized strategies. "The environment that we were in the last 12, 14 years really didn't call for Treasuries to be interesting.

 

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