SCHR Profile
The Schwab Intermediate-Term U.S. Treasury ETF is designed to offer investors exposure to U.S. Treasury securities with intermediate maturities. The fund primarily invests in securities that are part of the underlying index, which comprises publicly issued U.S. Treasury securities with remaining maturities between three and ten years. These securities must be investment grade and have a minimum outstanding face value of $300 million.
The fund maintains a policy of investing at least 90% of its net assets, including any borrowings for investment purposes, in securities that are included in the index. This approach ensures that the fund's investment portfolio closely tracks the performance of the index, providing investors with targeted exposure to intermediate-term U.S. government debt. The securities in the index are required to be fixed-rate, non-convertible, and denominated in U.S. dollars, which helps to maintain stability and liquidity in the fund.
Schwab’s investment strategy for the ETF involves careful selection and periodic rebalancing of securities to match the index’s criteria. By focusing on intermediate-term Treasury securities, the fund aims to offer a balance between yield and interest rate risk, providing a moderate-duration investment option. The intermediate maturity range allows the fund to mitigate some of the risks associated with long-term bonds while still capturing a higher yield compared to short-term Treasury securities.
The Schwab Intermediate-Term U.S. Treasury ETF is particularly suitable for investors seeking a stable investment with a moderate interest rate risk profile. It is ideal for those looking to diversify their portfolios with U.S. government debt that offers a balance of income and stability. The fund’s emphasis on intermediate-term securities provides an opportunity for investors to benefit from a steady stream of interest income while managing exposure to interest rate fluctuations.
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