OPER - OPER: When Repo Yields More Than T-Bills

2023-05-17 04:27:21 ET

Summary

• The ClearShares Ultra-Short Maturity ETF is a fixed-income exchange-traded fund.
• This fund has a very interesting structure by lending money in the institutional money markets as opposed to owning securities.
• The best way to think about OPER is as a lending fund that focuses on very short-term loans that are collateralized by Treasury notes and MBS bonds.
• OPER has outperformed both BIL and SGOV in the past year, and we expect it to continue to do so.
• This fund has the added optionality to benefit from any spikes in repo rates on the back of liquidity crunches as experienced in 2019 (the repo rate spiked to 10% then).

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