Nuveen Investments is planning to launch Fixed Income Trust Receipts (FITRs), the first ETFs that track Treasury Indexes. The FITRs will be based on indexes of 1-year, 2-year, 5-year and 10-year Treasury issues and 20-year Treasury STRIPs.
The funds will track the Ryan Treasury Indexes, created by fixed-income quantitative research organization Ryan Labs. The indexes reflect the risk and return characteristics of on-the-run (OTR) treasurys, which are the most recently auctioned Treasury security for a designated maturity.
Once final regulatory approval is obtained, the FITRs will trade on the American Stock Exchange.