IBTM Profile
The iShares iBonds Dec 2032 Term Treasury ETF is designed to offer investors targeted exposure to U.S. Treasury securities maturing in December 2032. The fund's investment strategy revolves around tracking an index that is market value-weighted, taking into account the amounts outstanding and adjusting for holdings by the Federal Reserve’s System Open Market Account (SOMA). This approach ensures that the fund aligns closely with the performance of the underlying index, reflecting the dynamics of the U.S. Treasury securities market.
To maintain its alignment with the index, the fund commits to investing at least 80% of its assets in the component securities of the underlying index. This substantial allocation helps ensure that the fund’s performance mirrors the index closely, providing investors with a focused investment in securities set to mature at the end of 2032. In addition, the fund will invest at least 90% of its assets in U.S. Treasury securities deemed by the fund manager, BlackRock Fund Advisors (BFA), to be representative of the index.
The ETF’s investment strategy involves holding U.S. Treasury securities that meet the criteria for inclusion in the index. This includes ensuring that the securities are appropriately weighted based on market value and accounting for the adjustments related to Federal Reserve holdings. This methodology supports the fund's objective of providing a precise and predictable investment return, consistent with the maturity date of the underlying securities.
During the final months of the fund's operation, it may temporarily deviate from these investment percentages as it approaches the end of its term. However, throughout its lifecycle, the fund's strategy remains focused on maintaining a high degree of correlation with the index, ensuring that investors receive returns closely aligned with those of the targeted U.S. Treasury securities maturing in December 2032. This non-diversified approach offers a specialized investment solution for those seeking a specific maturity date within their fixed income portfolio.
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