IBTH Profile
The iShares iBonds Dec 2027 Term Treasury ETF is designed to provide investors with targeted exposure to U.S. Treasury securities maturing within a specific timeframe. The fund commits to investing at least 80% of its assets in the securities that are part of its underlying index. Additionally, it ensures that a minimum of 90% of its assets are allocated to U.S. Treasury securities selected by BlackRock Fund Advisors (BFA) to closely align with the index's performance.
The underlying index includes U.S. Treasury securities scheduled to mature between January 1, 2027, and December 15, 2027. This focused maturity range allows the fund to offer a predictable investment horizon, catering to investors who are looking for stable returns from government securities within a specific period. By concentrating on bonds that mature within this window, the fund effectively manages interest rate risk and provides a clear investment strategy.
The investment approach of the iShares iBonds Dec 2027 Term Treasury ETF is to replicate the performance of its underlying index by maintaining a portfolio of U.S. Treasury securities that match the maturity profiles of the index constituents. This strategy helps in minimizing interest rate volatility and ensures that the fund’s returns are closely aligned with the expected performance of its targeted securities.
As a non-diversified fund, the iShares iBonds Dec 2027 Term Treasury ETF focuses exclusively on U.S. Treasury securities maturing within the designated timeframe. This concentration allows the fund to provide precise and transparent exposure to government debt, making it a suitable choice for investors seeking to match their investment horizon with short-term U.S. Treasury securities while avoiding broader market risks.
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