State Street Launches Low-Cost Ultra-Short Bond ETF with 5 Basis Points Fee

State Street Investment Management has launched the SPDR Portfolio Ultra-Short T-Bill ETF (SPTU), a low-cost ultra-short bond ETF with a 5-basis-point fee, one of the lowest in the Treasury bond fund category. SPTU provides exposure to U.S. Treasury bills with a remaining maturity greater than or equal to one month and less than 12 months. This is the firm's first ultra-short fixed income ETF and is designed to help investors meet their income generation and risk mitigation goals.

State Street Investment Management has expanded its low-cost ETF suite with the introduction of the SPDR Portfolio Ultra-Short T-Bill ETF (SPTU). The new fund, priced at just five basis points, is one of the lowest-cost ultra-short Treasury bond ETFs available. SPTU provides exposure to U.S. Treasury bills with a remaining maturity of one month to 12 months, making it an attractive option for investors seeking to manage risk and generate income.

The launch of SPTU comes at a time when fixed income ETFs have seen significant inflows, with over $300 billion of new money invested in 2025. This trend reflects investors' growing interest in gaining access to the bond market through ETFs, which offer liquidity and flexibility. SPTU is designed to help investors meet their income generation and risk mitigation goals, providing a cost-effective solution for those seeking to manage short-term cash positions or use it as collateral in derivatives markets.

State Street Investment Management has a proven track record in the short-term fixed income ETF space, with the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) managing $42 billion and adding over $5 billion in net inflows in 2025. The new ultra-short ETF complements State Street's existing suite, which includes the SPDR Portfolio Short Term Treasury ETF (SPTS), SPDR Portfolio Intermediate Term Treasury ETF (SPTI), and SPDR Portfolio Long Term Treasury ETF (SPTL).

Anna Paglia, chief business officer for State Street Investment Management, commented on the launch of SPTU, stating, "Whether it’s in response to changes in Federal Reserve policy, inflation expectations, economic forecasts, or liquidity needs, ETFs allow investors to fine-tune their fixed income allocations. The launch of SPTU provides clients with a low-cost, ultra-short term Treasury option designed to help them meet their income generation and risk mitigation goals."

SPTU may also serve as a cost-effective collateral tool for market participants, as it is intended to qualify as a permitted investment by futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) under CFTC Reg 1.25, as amended. This designation could make it a valuable addition to the portfolios of institutional investors and derivatives market participants.

The introduction of SPTU further demonstrates State Street Investment Management's commitment to providing investors with greater choice in low-cost ETFs. The firm's ETF suite has amassed over $323 billion in assets, with popular funds such as the SPDR Portfolio S&P 500 (SPLG) and SPDR Portfolio Developed World ex-US ETF (SPDW) adding billions of new money in 2025.

For more information on State Street Investment Management and its ETF suite, visit the ETF Strategist Content Hub.