Key Highlights

  • Betashares US Treasury Bond 20+ Year Currency Hedged ETF (ASX:GGOV) aims to provide hedged exposure to long-dated US Treasury bonds.
  • The fund was admitted to the ASX on 11 May 2020 and is categorised as Bonds - Global.
  • The fund has a fund size of $82.40 million.

As of 27 October, Betashares US Treasury Bond 20+ Year Currency Hedged ETF (ASX:GGOV) has $82.40 million in assets and has traded since 11 May 2020. Its benchmark is the S&P US Treasury 20+Yr Hgd TR AUD index.

Key Fact

Detail

Fund

Betashares US Treasury Bond 20+ Year Currency Hedged ETF

ASX code

GGOV

Issuer

Betashares

Category

Bonds - Global

Benchmark

S&P US Treasury 20+Yr Hgd TR AUD

Admitted to the ASX

11 May 2020

Fund size

$82.40 million

Management fee

Not disclosed

Holdings

Not disclosed

Maturity Focus

The benchmark's name points to US Treasuries with maturities of 20 years or more, hedged to Australian dollars. GGOV is categorised as Bonds - Global, a category that invests in foreign government and corporate debt with terms generally greater than one year, and typically maintains a predominant currency hedge.

Related Funds

Betashares also offers a shorter-duration, inflation-linked alternative in the Betashares Inflation Protected US Treasury Bond Currency Hedged ETF (ASX:UTIP), which holds 48 US Treasury securities.

Duration and the Long End

Long-dated bonds are generally more sensitive to changes in interest rates than short-dated ones, which is why the maturity band of a bond fund is a defining feature. GGOV's benchmark is limited to Treasuries with 20 or more years to maturity, so its holdings sit at the long end of the US government curve. Hedging to Australian dollars addresses currency movements but not interest rate movements, which remain part of the fund's exposure.

Within the range of US Treasury funds reviewed in this series, the maturity focus differs: iShares U.S. Treasury Bond (AUD Hedged) ETF (ASX:IUSG) covers the core Treasury market, VanEck 1-3 Month US Treasury Bond ETF (ASX:TBIL) covers bills of one to three months, and Betashares Inflation Protected US Treasury Bond Currency Hedged ETF (ASX:UTIP) covers inflation-linked notes.

Understanding the Category

Betashares US Treasury Bond 20+ Year Currency Hedged ETF is classified as Bonds - Global. Funds in this category invest in foreign government and corporate debt with terms to maturity generally greater than one year, and they maintain a predominant currency hedge.

Benchmark Background

The S&P US Treasury 20+Yr Hgd TR AUD index is the fund's benchmark. The fund has been listed since 11 May 2020, a period of about 6 years. Betashares is the issuer.

Wrapping Up

GGOV provides a dedicated route into long-dated US government debt with currency hedging.