Wisdom Tree offers short-duration SHAG to investors

By John Kenchington

Added 19th May 2017

Wisdom Tree has united with Bloomberg Barclays to launch SHAG, an exchange-traded fund (ETF) targeting short-duration US fixed income.

Wisdom Tree offers short-duration SHAG to investors

The group announced the launch in a press release “making the case for SHAG in a rising-rate environment”.

The Wisdom Tree Barclays Yield Enhanced US Short-Term Aggregate Bond Fund (SHAG) will aim to boost income levels for investors.

The ETF will draw on bonds listed in the Bloomberg Barclays US Aggregate Index, but aim to reduce interest-rate risk and boost yield by specially reweighting components within the index.

It will overweight credit securities and underweight low-yielding treasuries.

"SHAG quick facts" include a net expense ratio of 0.12% and the fact it will be US-dollar denominated, the group said.

“In a market environment where every basis point counts, overweighting treasuries might not be your first stop on the road to income,” said Kevin Flanagan, senior fixed income strategist at WisdomTree.

“SHAG may serve as a powerful tool for investors seeking to navigate a potential rising rate environment.”

Unfortunately SHAG may be out of reach for many British investors, with the fund set to be listed on the US’s BATS Exchange which has its main headquarters in Kansas.

 

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