F/m launches SGVA, first Accumulator Series ETF

F/m Investments launched the F/m Accumulator Ultrashort Treasury ETF (SGVA) on June 11 as the first fund in its new Accumulator Series. The actively managed, tax‑managed ETF targets U.S. Treasury securities with maturities of one year or less and carries a 22 basis point expense ratio.

SGVA directly invests in other short‑term Treasury ETFs, including the F/m US Treasury 3‑Month Bill ETF (TBIL), rather than buying individual bills. The fund compounds income inside the portfolio and aims to reduce the administrative work of dividend reinvestment for investors.

The portfolio team manages the timing of holdings and rotates underlying positions to avoid dividend record dates and limit taxable distributions. To limit taxable capital gains, the Accumulator structure uses in‑kind creation and redemption transactions that exchange securities without selling assets for cash.

The active structure gives the team discretion to select securities that proxy ultrashort Treasury exposure without following fixed index rules or paying an index provider. F/m says avoiding index fees in the cash space helps keep costs lower and prevents advance public disclosure of trades.

Alex Morris, F/m’s CEO, noted: “I think we’ve seen investors who are just not that interested in dealing with dividends and payments and trying to figure out what to do. They’re evergreen, they’re simple, they’re straightforward. They’re saying, ‘Here’s the outcome I want, deliver me the solution that provides the outcome.'”

SGVA is the inaugural product in a planned Accumulator Series that F/m may extend beyond fixed income. The series builds on the firm’s existing ultrashort offerings, including the F/m Ultrashort Treasury Inflation‑Protected Security ETF (RBIL) and the F/m Ultrashort Municipal Bond ETF (ZMUN). F/m manages about 20 actively managed fixed‑income ETFs and has assets under management approaching $10 billion.

F/m describes the Accumulator approach as better suited to relatively static strategies where frequent trading is not required.