The Global X 1–3 Month T-Bill ETF (CLIP) is an exchange-traded fund designed to provide exposure to short-term U.S. Treasury securities. The ETF is managed by Global X ETFs and trades under the ticker CLIP on the NYSE Arca.

Classified as a fixed-income ETF, the fund invests in U.S. Treasury bills with remaining maturities between one and three months. Its strategy seeks to provide capital preservation, high liquidity, and income generated from securities backed by the U.S. government.

The ETF follows a passive investment approach and seeks to reflect the performance of the ultra-short U.S. Treasury market by maintaining a portfolio primarily composed of Treasury bills.

Diversification and sector exposure

CLIP provides exposure primarily associated with:

• U.S. Treasury securities.

• Treasury bills.

• Fixed income.

• Short-term government bonds.

• Sovereign debt.

• Liquidity management.

• High-credit-quality assets.

• U.S. dollar.

The portfolio consists of U.S. Treasury bills with very short maturities, resulting in relatively low interest rate sensitivity compared with longer-duration fixed-income funds. The ETF's performance generally reflects movements in short-term Treasury yields and changes in Federal Reserve monetary policy.

Structure and costs

CLIP shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Interest income generated by the underlying Treasury securities is distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Global X 1–3 Month T-Bill ETF was launched in 2023 to provide investors with a low-risk vehicle for cash management and exposure to ultra-short-term U.S. Treasury securities.

Since inception, the fund has become part of Global X's fixed-income ETF lineup, serving investors seeking liquidity, capital preservation, and income in higher interest rate environments.

In recent years, the Federal Reserve's interest rate increases and growing demand for short-duration fixed-income investments have contributed to increased interest in Treasury bill ETFs such as CLIP.

Additional Information

Global X Funds (United States) is an exchange-traded fund (ETF), with assets under management totaling $2.59 billion.

Over the past 12 months, Global X Funds recorded a return of 3.91%, with its price trading between $100.05 and $100.44 during the same period.

The ETF is traded under the ticker CLIP.