A New Low-Cost Short-Term ETF to Consider

Core Viewpoint - State Street Investment Management is expanding its ETF business by targeting advisors and retail investors, highlighted by the launch of a new low-cost ultra-short bond ETF, the SPDR Portfolio Ultra-Short T-Bill ETF (SPTU) [1][2] Group 1: ETF Launch and Features - The SPDR Portfolio Ultra-Short T-Bill ETF (SPTU) began trading, providing exposure to U.S. Treasury bills with maturities between one and twelve months [1] - SPTU is priced at five basis points, making it one of the lowest-cost ETFs in the Treasury bond category, cheaper than the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) which has a fee of 0.14% [1] Group 2: Market Position and Performance - State Street has been a leader in the short-term fixed income ETF market, with the BIL managing $42 billion and adding over $5 billion in net inflows in 2025 [1] - The SPDR Portfolio ETF suite has accumulated over $323 billion in assets since its inception in 2017, with significant inflows in 2025, including $24 billion for the SPDR Portfolio S&P 500 (SPLG) [3] Group 3: Investor Appeal and Trends - The appeal of low-cost ETFs is underscored by the growing interest in fixed income ETFs, which have attracted over $300 billion in new money in 2025 as investors seek bond market access [4] - The launch of SPTU is positioned as a flexible funding solution for institutional investors, aiding in income generation and risk mitigation [2]