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If you have gotten used to single-stock ETFs, get ready for single-bond/Treasury ETFs. I suppose they make rolls easy although many brokerages (Fido, Schwab, etc) have auto-rolls for Treasuries. There may be other minor trading advantages for small ERs. Keep in mind that major brokerages already have commission-free trading for Treasuries. https://www.barrons.com/articles/single-treasury-bond-etf-51660337288?refsec=etfs&mod=topics_etfs
Of course, Treasury auto-rolls at brokerages are at maturity into like Treasuries.
However, these single-Treasury ETFs roll into on-the-run Treasuries (i.e. most recently issued like Treasury) as soon as possible/practical. So, they are closest commercially to constant-maturiry Treasuries for which charts/data are published by the Treasury (FRED).
I purchased 13-week T-Bills (which recently matured) at Vanguard. I was informed that when T-Bills mature the proceeds would automatically go to my settlement fund. In a subsequent conversation, a Vanguard rep mentioned no other options were available. I didn't specifically ask about auto-rolling the proceeds.
@crash, I think that single-stock/bond ETFs are the latest bad idea from the ETF industry. It is known to throw stuff on the wall and see what sticks.
But the ETF wrapper does allow cash/non-margin a/c to use leverage and do shorting, not that those are good things for retail investors. Even in margin/short a/c, they make the use of these techniques easier.
It seems lately in the secondary market the bid-ask spreads among treasury bills has gotten pretty high. Thinking about switching over to the new issues.
just looked at new issue auctions for Treasuries at Fidelity. the official schedule shows many bills 4 week, 8 week, 26 week etc for Tuesday, but the FIDO trading platform only shows 5 Bills earliest maturing Dec 2022.
Can you access the full auction at FIDO or do they limit it?
According to VBS, the five Treasuries you see at Fidelity is the full list of open auctions. For auctions that are not yet open, there are no indicative yields available for them.
Comments
However, these single-Treasury ETFs roll into on-the-run Treasuries (i.e. most recently issued like Treasury) as soon as possible/practical. So, they are closest commercially to constant-maturiry Treasuries for which charts/data are published by the Treasury (FRED).
I was informed that when T-Bills mature the proceeds would automatically go to my settlement fund.
In a subsequent conversation, a Vanguard rep mentioned no other options were available.
I didn't specifically ask about auto-rolling the proceeds.
https://www.thinkadvisor.com/2022/08/18/galvin-launches-sweep-of-single-stock-etfs/
But the ETF wrapper does allow cash/non-margin a/c to use leverage and do shorting, not that those are good things for retail investors. Even in margin/short a/c, they make the use of these techniques easier.
Can you access the full auction at FIDO or do they limit it?
VBS shows the nearest offering for each Treasury maturity period (e.g. 1 month, 2 month, etc.) along with its opening and closing dates. This includes both the five Treasuries that are already open and other Treasuries that have firm auction dates (albeit in the future).
https://www.treasurydirect.gov/instit/instit.htm?upcoming
https://personal.vanguard.com/us/FixedIncomeTrading (login required; select "auction" radio button)
Treasuries further out in the future may not even have firm auction dates, merely tentative ones.
https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf